Do Kwon to Remain in Jail After Court Revoked His Bail
- Do Kwon was previously granted bail on house arrest, but prosecutors appealed the decision.
- Both the US and South Korean authorities have filed charges against Do Kwon.
- US authorities have filed several charges against the Terraform Labs co-founder including a conspiracy to commit fraud.
Do Kwon, the co-founder of Terraform Labs, and former Terra executive Han Chong-Joon won’t be granted bail in Montenegro after prosecutors challenged the ruling, according to a Bloomberg report. The former Terra executives were detained in March after attempting to flee the country with forged identification.
The decision comes two weeks after Do Kwon’s lawyers proposed his release on bail of €400,000 ($436,000). At the time, the Basic Court in the Montenegrin capital, Podgorica, granted both Do Kwon and Han Choon-Joon bail on house arrest. However, the prosecutors appealed the decision to a high court, and according to Bloomberg, Do Kwon will remain in prison following the decision.
Aside from the accusations of false identification in Montenegro, Do Kwon is also wanted by both US and South Korean prosecutors. South Korean prosecutors claim that the Terraforms Labs co-founder violated capital market policies and issued a warrant for his arrest in September last year.
US authorities have reportedly filed charges against Kwon, including wire fraud, commodities fraud, conspiracy to commit fraud, and market manipulation. The U.S. Securities and Exchange Commission also initiated legal proceedings against Kwon in February for breaching the anti-fraud and registration policies of the Securities and Exchange Act.
According to reports, the Terraform Labs co-founder may be sentenced to up to 40 years in jail in South Korea and five years in prison in Montenegro if found guilty of the charges there. His trial is expected to begin on June 16.