Do Kwon Out On Bail Following Appeal
Do Kwon, the South Korean Co-Founder of Singapore-headquartered Terraform Labs, has been granted bail in Montenegro following a court appearance last week.
Appeal dismissal
The appeal brought by state prosecutors was dismissed by a Montenegrin court according to a statement released by the courts on Friday. The Basic Court in Podgorica confirmed that the State Prosecutor’s Office’s appeal against an earlier bail agreement was rejected, allowing Kwon and Terraform Labs’ chief financial officer Han Chang-joon to await further legal proceedings under house arrest in Montenegro.
The court reinstated the original bail terms set during a hearing on May 12, requiring both individuals to pay 400,000 euros ($436,000) each to secure their release from custody. Kwon and Han are now under strict bail conditions and are not permitted to leave Han’s legal residence in Montenegro.
According to the court statement: “The court appreciated the fact that they are persons who are not Montenegrin citizens, which is why it accepted their statements about the value of the property they own, which were supported by concrete evidence.”
The Montenegrin court found, following the first appeal, that the original decision to permit bail was not based on a sound assessment of “concrete evidence.” That allowed prosecutors to overturn that original decision, which has itself been overturned to permit bail once again.
Local police will closely monitor both individuals, and any violation of the supervision measures or departure from the residence will result in the forfeiture of the bail amount. To ensure compliance and discourage flight attempts, Kwon and Han provided personal and financial information to the local authorities, including evidence of property ownership and a sales contract for an apartment, parking space, and basement owned by Han. Kwon also submitted an invoice for a vehicle and bank account statements.
Alleged fake passports
Kwon and Han were arrested in Montenegro in March 2023 for allegedly using false travel documents while attempting to leave the country. Their original passports had been confiscated in South Korea in October 2022.
The court acknowledged that verifying the authenticity of the Belgian passports and identity cards held by the defendants would require additional time. However, it deemed the agreed-upon bail amount sufficient to ensure their presence during legal proceedings.
International interest
Despite being granted bail in Montenegro, Kwon remains wanted in multiple jurisdictions. South Korean authorities seek to extradite him for investigation into the collapse of the Terra ecosystem, which caused an estimated $40 billion loss in the cryptocurrency market in June 2022. Interpol has also issued a Red Notice for Kwon in connection with the charges in South Korea, and he faces several fraud charges in the United States.
The recent decision in Montenegro allows Kwon and Han temporary freedom while they await further legal proceedings. However, their legal troubles extend beyond Montenegro, with ongoing investigations and charges in South Korea and the United States casting a shadow over their future.
The pair are due back to appear before a Montenegrin court once again on June 16. Prosecutors have three days in which to file another appeal of the latest bail decision.
