On June 2nd, the Montenegrin court allowed the release of Terraform Labs’ co-founder Do Kwon and CFO Han Chang-Joon on bail. This decision was made after the court dismissed an appeal made by the State Prosecutor’s Office against a previous bail agreement. Consequently, both Kwon and Chang-Joon are now allowed to remain under house arrest in Montenegro pending further legal proceedings.
Originally set on May 12, the bail conditions require each to pay €400,000 ($436,000), after which they are not allowed to leave Chang-Joon’s legal residence in Montenegro. They are subject to strict monitoring by local police and risk forfeiting their bail if they breach any stipulated terms.
As part of the bail agreement, both Kwon and Chang-Joon had to provide detailed personal and financial information to the local authorities. This included evidence such as a sales contract and property registration for Chang-Joon’s properties, and an invoice for a vehicle and bank account statements provided by Kwon. The stringency of these terms aims to deter any attempts to escape the country.
Kwon and Chang-Joon were originally arrested in Montenegro in March 2023 for alleged use of false travel documents. Their original passports had been previously confiscated by South Korean authorities in October 2022. The court is still verifying the authenticity of their Belgian passports and identity cards. The bail amount, according to the court, should guarantee the defendants’ presence for the duration of the process.
Kwon is still wanted in various jurisdictions. South Korean authorities aim to extradite him for investigations into the collapse of the Terra ecosystem, which led to a $40 billion loss in the cryptocurrency market in June 2022. Interpol has issued a Red Notice for Kwon regarding charges in South Korea, and he is also facing multiple fraud charges in the United States.
