Last week, the bail deal of Terra Labs co-founder Do Kwon seemed to be in place with a Montenegrin court. However, the State Prosecutor’s Office has now filed an appellation against it, putting the agreement into question. Kwon is still wanted for extradition in South Korea and faces criminal charges in the United States, making this case a concern for crypto enthusiasts who closely follow regulatory updates.
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 — the chief financial officer of Terraform Labs — a release from detention on bail of 400,000 euros ($436,000) each, after having been initially struck on May 12.
Additionally, the court agreed to put Kwon under house arrest instead of taking him into custody, a decision that took only one day based on his lawyers’ proposal. This arrangement emphasizes the sensitive nature of this case and raises questions about the fairness of the legal proceedings. Moreover, the documents stated that if the house arrest were to be compromised, the bail would enter into a “special section” of the court’s working budget.
Do Kwon and Chang-Joon were arrested by Montenegrin authorities in March 2023 at Podgorica airport for allegedly using false documents, indicating that regulatory bodies are taking matters into their own hands. The two had their passports confiscated in South Korea, their country of origin, further complicating the situation.
This case gains even more significance considering the involvement of Terra Luna (LUNC), a dual-token ecosystem created by Kwon and Terraform Labs. In 2022, the de-pegging of its native TerraUSD (USTC) stablecoin led to the implosion of the ecosystem, causing approximately $40 billion in market value to vanish in days.
Presently, the former CEO of Terraform Labs has over 233.3 billion Korean won ($176 million) frozen in personal assets as part of ongoing criminal proceedings. South Korean prosecutors seek his extradition, while 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.
This case serves as a reminder to crypto enthusiasts to keep a close eye on the regulatory landscape and its impact on the industry. The fate of Do Kwon and Terraform Labs highlights the importance of adhering to legal guidelines and maintaining transparency to ensure a stable and prosperous
Source: Cointelegraph
