2023-06-06 16:38:05
The founder of the “crypto king” Terraform Labs was placed under house arrest following the Supreme Court of Montenegro finally approved his request for bail of 400,000 euros.
Do Kwon and the former financial manager of the bankrupt company, Hong Chang Jun, are facing court hearings in Montenegro hand in hand for falsifying official documents. In case you missed it, Terraform Labs was behind the stablecoin project called Terra, which collapsed and lost $40 billion.
Prison or house arrest?
This is already the third decision amendment regarding Do Kwon’s bail. The Podgorica Court first approved bail on May 12 following the defendants claimed that “worth millions” they have wealth. The wealth worth millions was certainly not an exaggeration, as some reports suggested that Do Kwon had $100 million stashed away in a Swiss bank account.
However, less than two weeks later, on May 25, the Supreme Court revoked the bail following the authorities might not accept the claims of the two men without concrete evidence. During the latest round, the value of their property and assets was verified by reviewing contracts, invoices and bank statements, which ultimately proved to be sufficient. In addition, the fact that due to the nature of the case the procedure was a complicated process may have played a role in the consideration of bail, as the accusation of falsification of official documents requires additional measures and checks.
Do Kwon’s day in court
After the court accepted bail of 400,000 euros, Do Kwon and Hong Chang Jun can be released from the Montenegrin prison and placed under house arrest.
The two men will appear in court on June 16, and if they are found guilty, they can be sentenced to up to five years in prison. The defendants have three days to appeal the bail decision.
Meanwhile, they await Kwon’s extradition
Both America and South Korea are seeking Do Kwon’s extradition to bring the crypto entrepreneur to justice for the Terra collapse. However, the Montenegrin authorities have stated that all this is possible only following the conclusion of the criminal proceedings. Kwon and his companions had been on the run for months when they were captured and arrested on a private plane bound for Dubai in March.
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