According to a recent report from Bloomberg on May 24, Terraform Labs co-founder Do Kwon and former chief financial officer Han Chong-joon will not be granted bail in Montenegro after prosecutors appealed the initial decision. The duo was apprehended in March while attempting to leave the country using falsified documents.
The Basic Court in Podgorica, Montenegro’s capital, had earlier approved their release to house arrest on a bail of 400,000 euros ($435,000) each. However, following the prosecutors’ appeal, the High Court will now reassess the bail conditions. The report mentions that there is no restriction on the number of times the Basic Court’s rulings can be appealed.
Meanwhile, both South Korean and United States authorities have sought Do Kwon’s extradition, and he is also facing charges in Singapore. In the United States, Kwon is confronted with eight charges, including commodities fraud, securities fraud, wire fraud, conspiracy to defraud, and engaging in market manipulation. Prior to his arrest, the U.S. Securities and Exchange Commission had filed a lawsuit against him, and a class-action suit has been initiated in California.
Do Kwon is expected to face a trial on June 16 in Montenegro, where he could be imprisoned for up to five years. In South Korea, the charges against him carry a potential sentence of up to 40 years. Notably, Montenegro has an extradition treaty with the United States but not with South Korea or Singapore.
Despite his disappearance following the collapse of the Terra ecosystem in May 2022, Do Kwon maintained a presence on social media and denied being in hiding. It was later discovered that he and Han Chong-joon were residing in Serbia, where Kwon had reportedly established a consulting company even after an Interpol Red Notice was issued for him.
