Terraform Labs Executives Denied Bail in Montenegro

Updated: 25 May 2023

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Terraform Labs executives Do Kwon and Han Chong-Joon, arrested in Montenegro for using fake documents to leave the country, have been denied bail.

Terraform Labs Executives Appeal for Bail of €400,000

The decision to release them to house arrest on a bail of €400,000 has been appealed by prosecutors. The Basic Court will review their bail again, and there is no limit to the number of times the court’s decisions can be appealed.NEW: Terra founder Do Kwon denied a previously granted bail deal of $880,000 by a higher court in Montenegro

The prosecution argued Kwon would have no interest to stay in Montenegro once released to await extradition pic.twitter.com/See7cJqDFZ

— Coinage (@coinage_media) May 24, 2023

South Korean and U.S. authorities and Singapore are seeking the extradition of Do Kwon, co-founder of Terraform Labs. He faces multiple charges, including commodities fraud, securities fraud, wire fraud, conspiracy to defraud, and market manipulation—the U.S. The Securities and Exchange Commission has already filed a lawsuit against him, and a class-action suit has been initiated in California.

Furthermore, Kwon could face up to 40 years in South Korea and five years in Montenegro. His trial in Montenegro is scheduled for June 16, and while Montenegro has an extradition treaty with the U.S., it does not have treaties with South Korea or Singapore.

In the meantime, the Basic Court will reconsider the decision that initially granted bail to Kwon. The outcome of this discrepancy between the courts remains uncertain for the former Terra executives. Currently, both Kwon and Han will remain in custody until the Montenegrin judiciary reaches a decision.

Fast Facts on Terra Labs Executives Arrests

Following the collapse of the Terra ecosystem in May 2022, Do Kwon, co-founder of Terraform Labs, went missing but continued to be active on social media, denying any claims of hiding. Despite an Interpol Red Notice being issued for him, it was later discovered that Kwon and Han Chong-Joon had been residing in Serbia. Notably, Kwon had allegedly established a consulting company in Serbia after the Red Notice was issued.

Kwon and Terra’s former CFO, Han, were arrested in Montenegro on March 23 for allegedly using fake passports to leave the country. A South Korean, Kwon, was apprehended based on an Interpol Red Notice.

On April 21, the Montenegrin court indicted both individuals. They denied the charges of forging travel documents, and their lawyers requested bail, which the local court granted. Authorities from South Korea and the U.S. are currently grappling with the decision of which jurisdiction should handle the extradition and charges against Do Kwon for his alleged involvement in fraud and other claims related to the collapse of Terraform Labs,

The collapse of Terra-Luna, Terraform’s cryptocurrency project, led to over $40 billion in market capitalization losses. Kwon is facing charges of fraud and securities law violations in the U.S. and South Korea, but he denies all allegations and claims they are politically motivated.

Terra Luna Community Overcomes Criticism, Celebrates Milestones

Since the collapse of TerraUSD (UST) in May last year, Terra Luna (LUNA) has faced significant criticism. However, the community remains dedicated to rebuilding the Terra ecosystem and supporting LUNA. Despite the challenges, the project has achieved notable milestones in recent months.

On May 18, the Terra team shared updates on various events and developments in April, including ecosystem progress, governance updates, integrations and listings, media features, and community highlights, via the official Terra (LUNA) Twitter account.

Get a quick read on everything that happened in the Terra ecosystem in April in this month’s Community Update!?

✅ Ecosystem Updates
✅ Governance Updates
✅ Integrations & Listings
✅ Media Features
✅ Community Thread Highlightshttps://t.co/gXvnl9Yho8

— Terra ? Powered by LUNA ? (@terra_money) May 18, 2023

The update, written by Zion Schum, Head of Communications at Terra Money, offered an overview of the current situation within Terra. Despite the constant battle against industry FUD (Fear, Uncertainty, and Doubt), the Terra community accomplished notable achievements in April. These included the introduction of the cutting-edge Alliance module and Enterprise’s user-friendly, no-code DAO management platform.