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Montenegro prosecutors appeal against Do Kwon’s bail terms

Montenegro prosecutors appeal against Do Kwon’s bail terms


Last week’s bail deal of Terra Labs co-founder Do Kwon with the Montenegrin court is now in question after the State Prosecutor’s Office filed an appellation against it. Kwon is still wanted for extradition in South Korea and has criminal charges to answer in the United States. 

On May 17, the State Prosecutor’s Office in Podgorica, the capital of Montenegro, appealed against the previous decision of the court to grant Do Kwon and Han Chang-Joon — Terraform Labs’ chief financial officer — a release from detention on bail of 400,000 euros ($436,000) each.

The bail deal was struck on May 12. The court has agreed to let Do Kwon be put under house arrest instead of being taken into custody. It took only one day for a court to agree on Do Kwon’s lawyers’ proposal. According to the documents, if the house arrest is compromised, the bail would be entered into a “special section” of the court’s working budget.

Kwon and Chang-Joon were arrested by Montenegrin authorities in March 2023 at Podgorica airport for allegedly using false documents. The two had their passports confiscated in South Korea, their country of origin. Back in 2022, the Terra Luna (LUNC) dual-token ecosystem created by Kwon and Terraform Labs imploded after the de-pegging of its native TerraUSD (USTC) stablecoin, erasing an estimated $40 billion in market value in a matter of days.

Related: Jump Trading faces lawsuit over alleged $1.3B profit from TerraUSD

As of now, the former CEO of Terraform Labs has over 233.3 billion Korean won ($176 million) arrested in personal assets frozen as part of ongoing criminal proceedings. South Korean prosecutors are seeking for his extradition, and the U.S. Attorney charges him with eight separate counts, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation.

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