According to Bloomberg, Terraform Labs co-founder Do Kwon’s bail has been revoked in Montenegro. The Montenegrin Supreme Court in Podgorica reversed a judgment made two weeks ago to release Kwon and Terraform’s former chief finance officer Han Chong-joon on bail of €400,000 ($436,000) each.
The court had ordered that the men be placed under house arrest in Montenegro while they awaited trial at the time. According to Bloomberg, Kwon “remains in jail” as per today’s judgment. A court spokeswoman informed the news site that the order to revoke bail on Wednesday also applies to Chong-joon.
According to the official announcement, Terraform Labs co-founder Do Kwon is scheduled to be released from detention in Montenegro after the Basic Court in Podgorica agreed to a €400,000 ($436,000) bail.
“The Basic court should now make another decision, taking into account what the High Court ruled,” said Marija Rakovic, the court spokeswoman. “There is no legal limit to how many motions can follow between the respective judges in deciding on bail for the two South Korean nationals.”
On the same terms, the court consented to free Terraform’s former chief financial officer Chang-joon Han. The two guys will be subjected to home arrest. The collapse of the Terra ecosystem in May 2022 was one of the major elements that contributed to the crypto industry’s long cryptopia.
The prosecution filed an appeal after the lower court granted bail to Kwon and Chong-joon. According to court spokeswoman Marija Rakovic, the case will now be remanded to the lower court.
Kwon and Chong-joon were accused with forgery after attempting to fly to Dubai from Podgorica in March using allegedly forged Belgian and Costa Rican passports. So far, both individuals have insisted that the passports are legitimate in court appearances.
Aside from the forgery charges, Kwon is also facing criminal charges in the United States and South Korea. Since September, a warrant for Kwon’s arrest has been issued in South Korea, charging that he breached capital market legislation.
The Securities and Exchange Commission of the United States filed civil charges against Kwon in February for breaching the securities and exchange acts’ registration and anti-fraud provisions.
Terraform Lab’s ecosystem, which comprised its algorithmic stablecoin TerraUSD and governance token Terra (LUNA), collapsed in May 2022, causing an industry-wide panic as other established enterprises failed.
Soon after Terra was wiped out, crypto hedge firm Three Arrows Capital, broker Voyager Digital, and lender Celsius Network all declared bankruptcy. BlockFi, a crypto lender, and FTX, a crypto exchange, both crumbled in the months that followed. They weren’t immediately in Terra’s blast radius, yet they were still victims of the contagion it caused.