Terra CEO Do Kwon’s Second Bail Release: Impact on Crypto Markets and Fraud Allegations

Intricate courtroom scene, Do Kwon and Han Chang-joon in focus, intense discussion with lawyers, soft light through windows, heightened emotions, uncertainty in the air, harmonious blend of realism and abstraction, somber colors conveying tension, subtle hints of hopefulness amidst struggle.

In a recent turn of events, Do Kwon, the Terraform Labs founder and CEO, and Terra’s former CFO Han Chang-joon, could be released on bail for a second time, according to a fresh Montenegro court ruling. Both were initially granted bail in May for a combined sum of approximately $856,000, with the condition that they did not leave their apartment and continued attending hearings. Since June 4, Terra Classic (LUNC) prices have been on the rise, which could be in response to the court’s decision.

Kwon and Han face charges for allegedly attempting to leave Montenegro using forged travel documents. More so, they are wanted in their home country of South Korea on fraud charges. Government agencies and police forces in both the United States and Singapore are also pressing for deportation.

Montenegro prosecutors appealed the initial decision at the High Court, which was upheld, leading to Kwon and Han being taken into custody for a second time. However, Kwon has since enlisted the help of Dentons, the world’s largest law firm, and through a move by his Montenegro-based legal team, the Podgorica District Court has ruled in his favor for the second time.

To secure bail, the court has instructed that both Kwon and Han must each pay $436,000. This decision provides Montenegrin prosecutors with a three-day window to appeal the bail terms. In the meantime, Kwon and Han have to remain in custody until the High Court delivers its verdict. If no objections are raised, they could be released early this week.

The district court has requested more time to verify Kwon’s claims that Costa Rica passports and other travel documents found on him and Han at the time of their arrest were lawfully obtained. Prosecutors have argued that the bail figure is too low, the defendants still pose a significant flight risk, and there are inadequate surveillance measures in place to ensure they do not attempt an escape.

During a previous hearing, Kwon disclosed that he jointly owned an apartment in South Korea worth roughly $3 million but did not reveal the value of his “other assets,” which are presumed to be crypto holdings. He cited the market’s volatility as the reason behind his inability to provide an accurate assessment of their worth. The duo is due back in court on June 16 for another hearing.

Source: Cryptonews

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