epa10620948 Police officers escort South Korean crypto mogul Do Kwon (C) in Podgorica, Montenegro, 11 May 2023. Do Kwon, who is on trial in Montenegro for forging travel documents, is wanted in South Korea, Singapore and the US for the involvement in the collapse of his company Terraform, which is estimated to have cost investors more than 40 billion US dollars. EPA/Boris Pejovic/2023-05-11 22:37:12/
Summary:
TerraUSD creator Do Kwon will be released in Montenegro after a court in the country’s capital granted his bail request.
Kwon’s lawyers proposed a bail of $437,000 or the equivalent of €400,000 during a court hearing on Thursday. The charges claim that Do Kwon traveled with forged documents after his arrest in March.
Local prosecutors argued that the two suspects have the financial means to escape Montenegro and have “zero interest” in staying in the country, an argument seemingly insufficient for the court.
A Basic Court in Podgorica will allow Kwon to stay at his apartment after he pays the bail. Han, a Terra executive detained alongside Kwon, will pay the same amount. Both defendants cannot leave their apartment or Montenegro and must answer all court summons per the terms of Friday’s bail ruling. Montenegrin prosecutors have three days to appeal this ruling.
Do Kwon who was about to board a private jet bound for Dubai before his arrest could spend five years in a Montenegrin prison cell if convicted. Another court hearing is scheduled for June 16 as authorities prepare to prosecute the Terraform Labs founder for allegedly forging travel papers.
Even if Kwon is cleared in a Montenegro court, possible extradition awaits for the crypto entrepreneur whose company obliterated $40 billion from the market last May.
It’s unclear how prosecution in Montenegro will affect extradition requests from South Korea and the U.S. Both jurisdictions hope to arraign Do Kwon, although investigators in South Korea argue that trying him in his home country is the best option.
The U.S. Securities and Exchange Commission (SEC) already filed civil fraud charges against the Terraform Labs founder.