Montenegro court voids bail for crypto entrepreneur Do Kwon

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SARAJEVO: A higher court in Montenegro on Wednesday (May 24) canceled an 800,000 euro ($880,640) bail previously granted to Do Kwon, a cryptocurrency entrepreneur accused in the United States of a multi-billion dollar fraud, and his ally awaiting trial.

Do Kwon, a South Korean national, is the former CEO of South Korea-based Terraform Labs, the company behind the TerraUSD stablecoin which crashed in May 2022, rocking cryptocurrency markets. .

He was arrested in March along with Han Chang-joon, the former finance manager of Terraform Labs, as they tried to board a flight to Dubai at the airport in Podgorica, the capital of Montenegro. The two men were charged with falsifying official documents and a court in Podgorica ordered their detention on remand for 30 days.

They remain in pre-trial detention.

The higher court agreed with a prosecutor that a bond of 800,000 euros could not be considered a solid guarantee, nor the promise of the duo not to flee once released, the spokeswoman of the court told the media premises.

The prosecution argued that the defendants, once released, would have no interest in remaining in Montenegro where they would await extradition.

Following Do Kwon’s arrest, the U.S. District Court in Manhattan released an eight-count indictment against him for securities fraud, wire fraud, commodity fraud, and conspiracy.

The defendants, who at a hearing earlier in May denied any wrongdoing regarding the charges brought by the Montenegrin prosecutor, told the court they held property worth millions and bail would be paid by their wives.

Police said that after arresting them, they found doctored Costa Rican passports, a separate set of Belgian passports, laptops and other devices in their luggage.

South Korean and American authorities have requested the extradition of Do Kwon and Chang-joon and the handing over of the computers.

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