The Terraform Labs co-founder is out on bail after a successful appeal in Montenegro but will be closely monitored until his next court appearance.
Terraform Labs co-founder Do Kwon has been granted bail in Montenegro after an appeals process by prosecutors was dismissed by a Montenegrin court on June 2.
According to an official release from the Basic Court in Podgorica, an appeal against an earlier bail agreement by the State Prosecutor’s Office was cast aside, allowing Kwon and Terraform Labs’ chief financial officer Han Chang-Joon to await further legal proceedings under house arrest in the country.
The court readopted bail terms originally set out in a hearing on May 12, with the pair having to pay 400,000 euros ($436,000) each to be released from custody. Kwon and Chang-Joon are now under strict bail terms and cannot leave the latter’s legal residence in Montenegro.
The pair are set to be closely monitored by local police. If either leaves the residence or violates supervision measures, the bail will be forfeited.
Kwon and Chang-Joon provided personal and financial information to local authorities, which included evidence of a sales contract and property registration for an apartment, parking space and basement owned by Chang-Joon.
Kwon reportedly supplied an invoice for a vehicle and bank accounts statements, with the bail terms set so that the defendants would be discouraged from attempting to flee the country.
Kwon and Chang-Joon were arrested in Montenegro in March 2023 after allegedly using false travel documents when trying to leave the country. The two had their original passports confiscated in South Korea in October 2022.
The court noted that verifying the authenticity of Belgian passports and identity cards held by the pair would require more time and highlighted that the agreed-upon bail amount “is a sufficient guarantee of securing the presence of the defendants.”
Kwon remains a wanted figure in several jurisdictions. South Korean authorities want to extradite the Terraform Labs co-founder for investigations into the infamous collapse of the Terra ecosystem, which wiped out an estimated $40 billion from the cryptocurrency market in June 2022.
Interpol also issued a Red Notice for Kwon in relation to the charges in South Korea, while he also faces a raft of fraud charges in the United States.