The State Prosecutor’s Office in the capital Podgorica filed an appeal contesting Do Kwon’s bail.
A Basic Court approved a bail worth £400,000 ($437,000) for the TerraUSD creator Do Kwon and another Terraform executive Han Chang-Joon a day after their lawyers filed the request.
Authorities from South Korea and the U.S. want to extradite Kwon for trial in Terra’s $40 billion collapse saga.
The bail granted to TerraUSD creator Do Kwon and his fellow Terraform Labs executive Han Chang-Joon by a Basic Court in Montenegro was contested by local prosecutors nearly a week later.
On May 12, Kwon and Han’s lawyers secured approval from the court to release the defendants a day after the request was filed. A £400,000 ($437,000) bail for each defendant was issued, allowing both suspects to leave detention after making bail and enter home arrest pending further hearings.
Less than a week later on May 17, the State Prosecutor’s Office in Podgorica appealed the court ruling.
Do Kwon and Han were arrested before they boarded a private jet bound for Dubai from Podgorica, Montenegro’s capital city. Local police said the suspects were detained with forged travel papers, as confirmed by the Interpol office in Brussels.
Montenegrin prosecutors charged Kwon and his travel companion with forgery, an offense that could attract a 5-year prison sentence if found guilty. The suspects are currently under house arrest and awaiting trial for forgery charges that they pleaded “not guilty” to.
Do Kwon’s Multi-Jurisdiction Legal Showdown
The former Terraform Labs CEO faces charges and prosecution from multiple governments including his home country South Korea and the U.S. where his company onboarded users.
South Korea investigators argue that its better to try Kwon in South Korea and have seized around $176 million in assets from the TerraUSD creator. If convicted in his home country, Kwon could face at least 40 years behind bars.
Criminal charges have already been filed against Do Kwon in the U.S. with an eight count indictment including fraud charges and securities violations.