| The Montenegrin High Court in the capital Podgorica has canceled the lower court's decision to release Do Kwon, the co-founder of the collapsed Terra ecosystem, on a $436,000 bail. The overturn means that Kwon will continue to be under arrest in jail. - The
move came nearly one week after Montenegrin prosecutors objected to the
bail agreement, sending the case to the higher judge to decide.
- The
decision has also canceled another $436,000 bail agreement for Han
Chang-Joon, the chief financial officer of Terraform Labs.
- The Montenegrin court accepted the bail proposal for Do Kwon and Han Chang-Joon earlier in May.
- The lower court will need to make another decision considering the High Court's rule.
- The
bail agreement was expected to see the pair being released from prison
pending trial and put under house arrest at an address determined by the
court following the payment.
- 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.
- Both
the U.S. and Kwon's native South Korea seek the 31-year-old Terra
founder's extradition, though they do not have a direct extradition
treaty with Montenegro.
- The 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.
- Do
Kwon currently 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.
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