Key Takeaways
- As per announcement, in the event of a violation of the house arrest, the bail amount will be transferred to a “special fund” of the court’s operational budget
- In addition to bail, the court imposed a measure prohibiting Do KwON from leaving his residence, which the court considers to substitute for imprisonment to a significant extent
Montenegrin authorities have accepted the proposed bail offer for Terra Luna founder Do Kwon and Terraform’s Chief Finnacial Officer Han Chang-joon of 400,000 euros ($436,000) each.
According to the announcement, in the event of a violation of the house arrest, the bail amount will be transferred to a “special fund” of the court’s operational budget. Furthermore, the court notice stated that it is essential to authenticate the travel documents and ID cards, which were supposedly issued by the relevant authorities in Belgium.
In addition to bail, the court imposed a measure prohibiting the accused from leaving their residence, which the court considers to substitute for imprisonment to a significant extent, and the bail guarantees compliance with the imposed surveillance measures.
The latest development comes a day after lawyers representing Kwon and Chang-joon proposed to court that they be confined to home arrest after providing 400,000 euros each in bail.
Kwon and Chang-joon, co-founders of Terra, were arrested in March at Podgorica airport by Montenegrin authorities for allegedly using forged passports. While both the US and South Korea have sought Kwon’s extradition, he is expected to face legal proceedings in Montenegro first.
Last year, Interpol has issued a red notice for Do Kwon, requesting law enforcement agencies worldwide search for and arrest the Terraform Labs founder.
After the collapse of the Terra cryptocurrency (Luna) and its associated stablecoin, TerraUSD (UST), investors lost a total of $40 billion, leading to public outrage and prompting prosecutors to initiate investigations into the conduct of Kwon and his colleagues.Currently, both the South Korean and U.S. authorities are seeking Kwon’s extradition.
Earlier probes into the Terra collapse by the United States Securities and Exchange Commission revealed that Kwon siphoned nearly $100 million worth of Bitcoin from Terra post-collapse. Last month, South Korean authorities confiscate roughly $160 million worth of assets from eight people connected to the collapse of Terraform Labs, including co-founder Daniel Shin.
Reportedly, the prosecutors’ actions were targeted at preventing former Terra employees from disposing of assets in an attempt to ensure they were part of potential criminal proceedings.
The development by the Montenegrin authorities comes a day after the Seoul Southern District Court reportedly froze 233.3 billion won in assets (approximately $176 million) personally owned by Do Kwon.
