Terraform Labs’ co-founder, Do Kwon, has been granted bail in Montenegro after prosecutors’ appeals were dismissed by a Montenegrin court on June 2.
In an official statement released by the Basic Court in Podgorica, the appeal made by the State Prosecutor’s Office against the earlier bail agreement was rejected. As a result, Kwon and Terraform Labs’ chief financial officer, Han Chang-Joon, are now allowed to await further legal proceedings under house arrest in Montenegro.
The court reinstated the original bail terms set during a hearing on May 12. Both individuals are required to pay €400,000 ($436,000) each to secure their release from custody. They are currently under strict bail conditions and are not permitted to leave Chang-Joon’s legal residence in Montenegro.
Local authorities will closely monitor Kwon and Chang-Joon, and if either of them violates the terms of their supervision or attempts to leave the residence, the bail will be forfeited.
To comply with the bail requirements, Kwon and Chang-Joon provided personal and financial information to the local authorities, including a sales contract and property registration for an apartment, parking space, and basement owned by Chang-Joon. Kwon also submitted an invoice for a vehicle and bank account statements. These measures were put in place to discourage the defendants from attempting to flee the country.
The arrests of Kwon and Chang-Joon took place in Montenegro in March 2023. They were accused of using false travel documents in an attempt to leave the country. Their original passports had been confiscated in South Korea in October 2022.
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The court acknowledged that verifying the authenticity of the Belgian passports and identity cards held by the defendants would require additional time. However, it emphasized that the agreed-upon bail amount is sufficient to ensure the defendants’ presence during the legal proceedings.
Kwon remains wanted in multiple jurisdictions. South Korean authorities seek to extradite him to investigate the collapse of the Terra ecosystem, which caused an estimated $40 billion loss in the cryptocurrency market in June 2022.
Interpol has issued a Red Notice for Kwon regarding the charges in South Korea, and he also faces numerous fraud charges in the United States.
