Do Kwon Released On Bail, Court Rejects Prosecution’s Appeal

Do Kwon Released On Bail, Court Rejects Prosecution's Appeal

Do Kwon, co-founder of Terraform Labs, has been granted bail by the Montenegrin court on June 2. The judge dismissed the prosecutor’s appeal to decline the bail.

As per the official statement by the Basic Court in Podgorica, the appeal made by the State Prosecutor’s Office against the prior bail agreement has been cast aside. As a result, the CFO (chief financial officer) of Terraform Labs Han Chang-Joon is put under house arrest.

Court Rejecting the Prosecution’s Appeal

The court had decided to readopt the bail terms that were originally set out on the hearing on the 12th of May. Therefore, both Joon and Do Kwon would have to pay 400,000 euros ($436,000) to receive the bail.

Chang-Joon and Do Kwon have been released on bail but with strict terms. They’re ordered to stay in the legal residence of Chang-Joon in Montenegro. The local police have been advised to keep a close watch on the pair.

If anyone of them sets foot outside of the residence or doesn’t abide by the supervision rules, then their bail would be canceled. The pair also had to provide all the financial details and personal information to local authorities.

This meant that they had to provide evidence of the sales contract along with the property registration documents for Chang-Joon’s residence.

In addition to this, Do Kwon also had to provide the invoice for the cars and details of their bank accounts. The tough bail terms are set in a manner that would discourage the defendants from fleeing the country.

Do Kwon Arrested in Montenegro in March 2023

Chang-Joon and Do Kwon were arrested from Montenegro in March 2023. They were arrested because of allegedly using fake travel documents in an attempt to leave the country. Both of them had their original passports taken by the South Korean authorities in October 2022.

The court also noted that checking the authenticity of the identity cards and the Belgian passports that the pair currently has would require additional time. Hence, the agreed-upon bail would provide “be more than enough to ensure the defendants’ presence.”

Many Countries Requesting Extraditing Do Kwon

Kwon has been a wanted figure in various countries. Most notably, South Korea wants to extradite the Terraform Labs co-founder in a bid to probe the famous collapse of the Terra ecosystem, which lead to a wipeout of around $40 billion from the crypto market capitalization in June last year.

International law enforcement agencies are also targeting Do Kwon for his involvement in the Terra ecosystem’s collapse. Interpol also recently issued a Red Notice for the Terraform Labs co-founder related to the charges he faces in South Korea.

Cases and Charges in the US

Kwon has also stayed in the US for quite some time previously. However, there is no record telling whether he was a permanent resident or a U.S. national. Additionally, there isn’t any information regarding whether he has committed criminal acts against the citizens of the United States.

In February this year, the U.S. SEC (Securities and Exchange Commission) charged the co-founder of Terraform Labs with “manipulating an algorithmic stablecoin and different crypto asset securities to commit a multi-billion dollar fraud.”

Moreover, the U.S. (DOJ) Department of Justice is also investigating the role of Kwon in the Terra ecosystem’s collapse. But there haven’t been any criminal complaints up till now against Kwon in the U.S.

Apart from South Korea, Do Kwon also faces various charges in the United States. As of now, there is an extradition agreement between Montenegro and South Korea.

But, the country does have an old extradition treaty with the United States. Montenegro has combined various requests in the past from U.S. nationals. In addition to the U.S., the country also engages with Interpol on extradition matters.