Legal
On June 3, a primary court in Montenegro once again agreed to the bail request of Do Kwon, co-founder of Terraform Labs, and his associate Han Chang-joon. Although it is unclear why the case was overturned, the country’s prosecutors will have three days to appeal the ruling.
On May 12, the Basic Court in Montenegro agreed to a $436,000 bail for Terraform Labs co-founder and CEO Do Kwon and Terra CFO Han Chang- joon with the same condition. At the time, the court ordered that the men be placed under house arrest in Montenegro pending trial.
However, two weeks later, the decision was revoked after prosecutors appealed the decision. It is known that when the judgment was revoked, the Court of Montenegro had not yet received bail from the two defendants.
Kwon and Chang-joon have been charged with forging official documents after attempting to fly to Dubai from Podgorica in March with alleged fake Belgian and Costa Rican passports. In the trials, both men have asserted that the passports are genuine.
In addition to the tampering charge, Kwon also faces criminal charges in the US and South Korea. Since September, South Korea has had an arrest warrant for Kwon, alleging that he violated capital markets laws.
In February, the US Securities and Exchange Commission filed civil charges against Kwon for violating securities and exchange practices’ registration and anti-fraud regulations.
The May 2022 collapse of the Terraform Lab ecosystem, including the TerraUSD algorithmic stablecoin and the Terra governance token (LUNA), caused panic across the industry as established companies collapsed.
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