Terra Founder Do Kwon Has His Bail Revoked

According to a report by Bloomberg, the high court of Montenegro in Podgorica has revoked the bail of Do Kwon, co-founder of Terraform Labs. This decision overturns a previous ruling made two weeks ago, which granted Kwon and Terraform's former chief financial officer Han Chong-joon release on €400,000 ($436,000) bail each.

Previously, the court had directed that both individuals would be subjected to house arrest in Montenegro until their trial. However, as per Bloomberg's report, following the recent decision, Do Kwon "remains in jail." The court spokesperson also confirmed that the revocation of bail applies to Han Chong-joon as well.

Following the initial grant of bail by the lower court, the prosecution lodged an appeal against the decision. Court spokesperson Marija Rakovic informed Bloomberg that the case will now be sent back to the lower court for further proceedings.

Do Kwon and Chong-joon are facing charges of forging official documents after allegedly attempting to travel to Dubai from Podgorica in March using purportedly counterfeit Belgian and Costa Rican passports. During their court appearances, both individuals have maintained that the passports are authentic.

In addition to the forgery charges, Kwon also confronts criminal allegations in the United States and South Korea. South Korea has issued an arrest warrant for Kwon since September, accusing him of violating capital market laws.

In February, the U.S. Securities and Exchange Commission (SEC) brought forward civil charges against Kwon, accusing him of violating the registration and anti-fraud provisions outlined in the securities and exchange acts. The collapse of Terraform Lab's ecosystem in May 2022 had far-reaching consequences, leading to widespread panic across the industry as other established firms suffered.