Terra's co-founder, Do Kwon, finds himself in a legal wrangle, as the bail terms that momentarily granted him a breather are now under scrutiny.
The State Prosecutor's Office in Montenegro's capital Podgorica isn't taking Do Kwon's bail conditions lightly and recently submitted an appeal against the bail.
It is worth noting that Do Kwon is sought by both South Korea and the United States for extradition.
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The Prosecutor's Office challenged the decision which had previously allowed Do Kwon and Han Chang-Joon to be released from detention on bail, which amounted to 400,000 euros ($436,000) for each individual.
The bail agreement was reached on May 12th, and the court agreed to the proposition of keeping Do Kwon under house arrest rather than full-fledged custody.
The court deliberated for a day before greenlighting Do Kwon’s legal team proposal. Based on the presented documents, the bail would be directed to a “special section” within the court’s operational budget if the conditions of the house arrest were breached.
In March 2023, the Montenegrin authorities arrested Kwon and Chang-Joon at the Podgorica airport. The two men were accused of possessing falsified documents. It is worth noting that both men had their passports seized in South Korea.
The previous year, the Terra ecosystem, a brainchild of Kwon and Terraform Labs, experienced a significant downfall. The native TerraUSD (UST) stablecoin depegged, leading to an estimated $40 billion plummet in the market value in several days.
It is noteworthy that Kwon cannot access a jaw-dropping sum of over 233.3 billion Korean won ($176 million) in personal assets due to the ongoing criminal proceedings.
While South Korean prosecutors are keen on his extradition, the US prosecutors have indicted him on multiple counts, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation.
The road ahead for Do Kwon seems fraught with legal hurdles as he faces extensive charges across multiple jurisdictions. The recent appeal against his bail conditions by Montenegro's prosecutors adds another layer of complexity to this unfolding saga.