A Supreme Court in Montenegro has overturned an earlier decision by a lower court that would have released Terraform Labs founder Do Kwon on bail. Bloomberg reported first in the news.
According to Bloomberg, which quoted a court spokesman, Kwon will remain in prison until the Basic Court in Montenegro makes another decision in light of the Supreme Court’s recent decision.
The Supreme Court ruling comes almost two weeks later The Supreme Court of Montenegro approved the release Kwon and his former colleague Chang-joon Han were arrested on bail.
At the first hearing earlier this month, Kwon pleaded not guilty to charges of forging his passport and travel documents. Kwon and Han’s lawyer applied to the Montenegrin court for their release on bail of €400,000 (US$437,000) each and proposed house arrest under police supervision.
The two men were arrested in March at the airport in Podgorica, the capital of Montenegro, while trying to fly to Dubai.
A year ago, Terraform’s stablecoin TerraUSD (UST), an algorithmic stablecoin partnered with its sister coin Luna, lost its $1 peg, wiping out about $40 billion in market value and causing many crypto firms to fail.
Both US and South Korean authorities are currently seeking Kwon’s extradition to face charges. If Kwon is convicted of falsifying his documents in Montenegro, he may have to do so is serving his prison sentence before being shipped to the US or South Korea. The next hearing is scheduled for June.
