Montenegro’s high court has approved the request for bail by Do Kwon, the founder of Terra. The bail amount is set at 400,000 euros ($427,740), according to a statement released on June 2. This decision comes after the initial bail decision made by the basic court was revoked. The basic court appealed this decision, requesting the same bail conditions and additional monitoring, including a ban on leaving the defendants’ apartments. The appeal was accepted by the high court in Podgorica.
Kwon, along with former Terra executive Han Chang-joon, is currently in custody in Montenegro, facing charges of attempting to travel with forged documents. Terra, a blockchain network, experienced rapid growth in 2021, with its tokens Luna and TerraUSD (UST) reaching a peak market capitalization of around $45 billion. However, the market capitalization declined when UST began to depeg in May 2022, causing concerns about token stability and the network.
The high court in Montenegro has now approved the bail request made by the defendants C.J.H. and K.D.H., setting it at 400,000 euros each. This decision was announced on June 2, following the revocation of the initial bail decision by the higher court.
Initially, the Basic Court in Podgorica accepted the offered bail for the defendants, who are Korean citizens charged with document forgery. However, the higher court overturned this decision upon the appeal of the Basic State Prosecutor’s Office. On June 2, the Basic Court issued a new decision, once again accepting the bail for both defendants and imposing a measure of supervision—a prohibition on leaving their residences—to be enforced by the police.
The court considered various factors, including the defendants’ financial status, the seriousness of the charges, their personal circumstances, and the financial situation of the individuals providing the bail. The court also acknowledged that the defendants are not Montenegrin citizens and accepted their statements regarding the value of their assets, supported by specific evidence.
The bail amount of 400,000 euros for each defendant was deemed sufficient to deter them from attempting to flee. The court also highlighted the need for additional verification of travel documents and identity cards, which may prolong the proceedings. Considering the potential prison sentence of 3 months to 5 years for the charges, the court found the bail amount to be a significant portion of their assets, ensuring their presence during the trial.
In addition to the bail, the court imposed a measure of supervision, prohibiting the defendants from leaving their residences. Violation of this measure would result in the forfeiture of the bail and allocation to the court’s budget. The dissatisfied party has the right to appeal this decision within 3 days.
Authorities in South Korea and the United States have requested Do Kwon’s extradition to face criminal charges related to the collapse of the Terra ecosystem. The Securities and Exchange Commission (SEC) has also charged Kwon and his company, Terraform Labs, for allegedly misleading investors. The authenticity of the defendants’ travel documents and identity cards, allegedly issued by Belgian authorities, is being investigated in collaboration with Belgium authorities.
The prosecution has a three-day window to appeal the decision made by the higher court.
