Terra Founder Do Kwon Released on Bail

Terra Founder Do Kwon Released on Bail

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A Montenegrin court set bail at $436,000 following a hearing on Thursday, where the Terra founder pleaded not guilty to fraud charges.

Photo by Tingey Injury Law Firm on Unsplash

Former founder and CEO of Terraform Labs Do Kwon will be released from custody in Montenegro.

According to an official announcement from the Podogorica Basic Court in Montenegro, Kwon secured bail at 400,000 Euros, worth around $436,000. Under the terms of his bail agreement, Kwon will be confined to house arrest in an apartment in the Montenegrin capital. 

Han Chong-joon, former CFO of Terraform Labs who was arrested alongside Kwon in March, was also released under the same terms. The two were intercepted by authorities when attempting to board a plane to Dubai with falsified documents.

In a court hearing on Thursday, Kwon and Chong-joon pleaded not guilty to fraud charges alleging that they held fake passports from Belgium and Costa Rica and maintained that their documents were authentic.

“The defendants explained their financial circumstances to the court, indicating that they have property worth several million, while the said amount would be paid by their wives,” read the court statement. 

“They also promised that if bail is set, they will not hide until the end of the criminal proceedings, that they will regularly respond to court summons, and that they will be available at the address provided by their defense attorney.”

Local prosecutors, however, opposed the bail request, arguing that Kwon and Chong-joon have “zero interest” in remaining in Montenegro.

The U.S. and South Korea have placed extradition requests for Kwon who faces a series of charges, associated with the collapse of Terra’s stablecoin UST and its native token LUNA, in both countries. Last month, Kwon’s legal counsel urged a U.S. court to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC) arguing that the regulator’s allegations were unsubstantiated.

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