Montenegrin court;has accepted;a $436,000 bail proposal for Do Kwon, the co-founder of the collapsed Terra ecosystem, one day after the 31-year-old founder's lawyers filed the request.
;Following the payment, Kwon will be released from prison pending trial and put under house arrest at an address determined by the court on condition that he regularly responds to court summons and does not hide until the end of the criminal proceedings.
- The proposal included Han Chang-Joon, the chief financial officer of Terraform Labs, alongside Kwon.
- The bail payment will be made separately for the two former Terra executives by their wives for $436,000 each.
- Do Kwon and Han Chang-Joon;were arrested at;the Podgorica Airport in Montenegro in March while trying to fly to Dubai carrying falsified traveling documents.
- In April, the pair also;became the subject;of an indictment proposal submitted by prosecutors in Montenegro with the charges of forging personal documents and faced a request for an extension of their detention.
- Along with the bail proposal, the lawyers for two former executives also denied the charges of carrying falsified travel documents.
- The court ordered both sides to verify the authenticity of travel documents and identity cards allegedly issued by Belgian authorities.
- The prosecution has three days to file an objection to the decision.
- Meanwhile, both the U.S. and Kwon's native South Korea seek Terra founder's extradition, though they do not have a direct extradition treaty with Montenegro.
- The 31-year-old founder also faces many lawsuits and investigations in several countries, including South Korea and the U.S., with allegations such as tax fraud, deceiving investors, racket collecting, and building a Ponzi scheme.
- Multibillion-dollar Terra;ecosystem;collapsed last year after its native token Luna's price plummeted nearly to zero in May 2022 and lost all its value against the U.S. dollar (USD), triggering a prolonged crypto winter.
- The collapse caused over $60B of money to be wiped off the crypto market.