Montenegro court overturns bail for Terraform founder Do Kwon

A high court in Montenegro has overturned a previous lower court ruling that would have released Terraform Labs founder Do Kwon on bail. Bloomberg first reported the news.

Kwon will remain in prison until the Montenegro Magistrate’s Court issues another decision in light of the latest high court ruling, according to Bloomberg, which quoted a court spokesperson.

The High Court’s decision comes nearly two weeks after Montenegro’s Magistrate’s Court agreed to release Kwon and his former colleague Chang-joon Han on bail.

At the first hearing earlier this month, Kwon pleaded not guilty to a charge of falsifying his passport and travel documents. Kwon and Han’s lawyer asked the Montenegrin court to release them on bail of €400,000 ($437,000) each and offered house arrest under police surveillance.

The pair were arrested at the airport in Montenegro’s capital Podgorica in March as they tried to fly to Dubai.

A year ago, Terraform’s stablecoin TerraUSD (UST), a stablecoin algorithm that worked with its sister coin Luna, lost its $1 peg, wiping out an estimated $40 billion in market value and crashing. collapse many crypto companies.

US and South Korean authorities are currently seeking Kwon’s extradition to face charges. If Kwon is found guilty of falsifying his documents in Montenegro, he may have to serve his prison sentence before being extradited to the United States or South Korea. The next hearing is scheduled for June.