• Do Kwon, the founder of failed blockchain firm Terraform Labs, is to be released on €400,000 bail and put under police surveillance.
• The trial against him and another South Korean citizen for travelling on false documents has started with both pleading not guilty.
• His extradition from Montenegro is sought by authorities in South Korea and the US in connection with a $40 billion crash of two digital currencies.
Terraform Labs Founder to Be Released on Bail
A Montenegrin court has decided to release Terraform Labs founder Do Kwon from jail but place him under police surveillance at a local residence. He will have to pay 400,000 euros as bail for his temporary freedom. The trial against him and another South Korean citizen, charged with travelling on false documents, opened with both pleading not guilty.
Extradition Requested by Seoul & US Authorities
Do Kwon is wanted by authorities in South Korea and the US in connection with the collapse of two digital currencies – luna and terraUSD – which caused losses worth around $40 billion for 200,000 people who had bought them. He reportedly left Singapore right before their value evaporated after which he fled to Serbia where he registered a new firm.
Han Chang-Joon Also Facing Charges
Kwon was arrested by Montenegrin authorities while trying to board a flight for Dubai using a Costa Rican passport along with his companion Han Chang-joon whom reports suggest is the company’s Chief Financial Officer (CFO). Both are facing charges for attempting to use forged personal documents in Montenegro.
Surveillance Measure Imposed On Suspects
The court accepted 400,000 euros ($435,000) as bail for each suspect pending the outcome of their trial; however they will be prevented from leaving their apartment which will be guarded by Montenegrin police forces. If they violate this surveillance measure or run away during the criminal proceedings then their bail will be forfeited according to court statements.
Pleads Not Guilty
Both suspects pleaded not guilty during the trial indicating that they intend to defend themselves against these charges brought against them by prosecutors in Montenegro.