Do Kwon will be released from Montenegro detention after his bail request of approximately $427,900 (€400,000) was accepted.
This comes after the court verified his property to be "worth millions."
The Terraform Labs co-founder waits to face trial—alongside his former finance officer Han Chang-Joon—in Montenegro for falsifying official documents. Terraform Labs was the firm behind the collapsed stablecoin project Terra.
This is the third change of ruling regarding Do Kwon's bail. Originally, the Basic Court of Podgorica—the country's capital—had approved bail on May 12.
Terra’s Do Kwon Caught in Jurisdictional Battle Between US and South Korea
Do Kown, co-founder and former CEO of now-defunct Terraform Labs, Do Kwon, is facing extradition to South Korea and the United States after being arrested trying to leave Montenegro with a fake passport in late March. The South Korean national is under indictment due to the spectacular collapse of Terra’s algorithmic stablecoin TerraUSD (UST) alongside the platform’s native asset Luna, which saw nearly $40 billion dollars disappear from the cryptocurrency market and sparked fears of contagion ac...
However, less than two weeks later, on May 25, the High Court revoked his bail.
A key point that has complicated this bail request is the assumed price of the defendant's property.
In a hearing on May 11, the defendants told the court that they had "property worth millions." This value was later disputed by the High Court meaning bail was revoked. The High Court said that the lower court could not accept the value of the property "based on their statements, but only concrete evidence."
In the latest turn of events, the value of their property has been verified using a sales contract, invoices, bank account statements, and more.
How Terra's UST and LUNA Imploded
Decrypting DeFi is Decrypt's DeFi email newsletter. Art: Grant Kempster Amid the craziest week in crypto ever, the collapse of Terra's UST stablecoin and governance token LUNA emerged as the biggest story. Amid the crash, LUNA, formerly a top 10 coin by market cap, fell 100% to fraction of a fraction of a cent, and UST, designed to stay pegged at $1, bottomed out at 13 cents. So what the hell happened? Grab your coffee, you're going to need it. There were several forces at work. The first is the...
"The possibility of losing the security deposit in the amount of EUR 400,000.00 each had a sufficiently discouraging effect on the defendants to dissuade them from any desire to escape," the Court concluded.
Another reason why bail was considered is that, due to the nature of the case, the duration of the procedure is uncertain.
With the charge being falsifying official documents, it is necessary that the courts take "additional actions" to verify the authenticity of the documents.
Kwon’s day in court
Do Kwon is now set to be released from Montenegro jail alongside co-defendant Han Chang-Joon on police-enforced house arrest after bail is posted by his wife.
Both Do Kwon and Han Chang-Joon are set to appear in court on June 16. If found guilty the pair could face a prison sentence of up to five years.
The defendants have three days to appeal this bail decision.
