Terra Labs Co-founder Do Kwon Granted $436,000 Bail in Montenegro

From Fraud Charges to Bail Release

Terra Labs founder Do Kwon has been granted release from jail on a €400,000 ($436,000) bail by a court in Montenegro pending his trial,  according to an official announcement. There is a three-day appeal period for the prosecution. 

Kwon was arrested in March, along with former Terraform Chief Financial Officer Han Chang-joon, for allegedly attempting to leave the country using a fake passport. With false Costa Rican travel documents, the two men allegedly attempted to board a private flight to Dubai. 

Kwon pleaded not guilty during Thursday's court appearance, and the defense lawyers requested that Kwon and Han "report to the state authority periodically." However, the state prosecutors rejected these proposals. 

Kwon faces legal proceedings in South Korea and in the US following TerraUSD's collapse. A South Korean court issued an arrest warrant for Kwon in September for violating capital markets laws. The Securities and Exchange Commission has also brought civil charges against Kwon in the U.S.

Further, in a filing from a New York federal court, Kwon and Han were charged with conspiracy to commit commodities, securities, and wire fraud, as well as conspiracy to defraud investors and engage in market manipulation. Last year, TerraUSD, the stablecoin that Terraform Labs created, collapsed, wiping out billions of dollars in investors' pockets.