A Montenegrin court has allegedly overturned a lower court’s decision to release former crypto mogul and Terraform Labs co-founder Do Kwon on bail. The high court in Podgorica also overturned the decision for Han Chong-joon, Kwon’s former chief financial officer, according to a Bloomberg report.
Crypto Mogul Do Kwon Faces Jail Time
Earlier this month, the Basic Court in Podgorica had approved Kwon and Chong-joon’s release on bail to the tune of €400,000 ($430,500). However, the prosecution promptly appealed the ruling, which led to the case being sent to the higher judge for a final decision.
Per the report, the court spokesperson, Marija Rakovic, stated that the Basic Court would need to make another decision based on the High Court’s ruling. There is no legal limit to the number of motions that can follow between the respective judges in deciding on bail for the two individuals.
Kwon and Han were arrested in Montenegro in March at the request of the US authorities, who have accused them of laundering $700 million through their cryptocurrency exchange, Terraform Labs. The two men deny the allegations and have been fighting extradition to the US.
The decision is the latest development in a legal saga that began in August 2020 when Kwon and Chong-joon were arrested on charges of abuse of power and money laundering. Both individuals have denied the allegations.
However, the outcome of the legal proceedings against Kwon and Chong-joon will be closely watched by the crypto community as it could have implications for the industry’s reputation. The arrest of high-profile figures in the crypto world on charges of financial crimes could reinforce negative perceptions of the sector and hinder adoption by mainstream investors.
The decision to revoke Kwon and Chong-joon’s bail also highlights the challenges faced by crypto-related businesses in navigating a complex and evolving regulatory landscape. As the industry continues to grow and mature, it will be important for players in the space to prioritize compliance and work closely with regulators to ensure a sustainable and trustworthy ecosystem.
In the meantime, the fate of Do Kwon and his former CFO remains uncertain, with the possibility of further motions and appeals in the coming weeks and months. The crypto community will be watching closely to see how the case unfolds and what impact it may have on the industry’s future.
Do Kwon is a prominent figure in the crypto industry, having co-founded Terraform Labs, the company responsible for the stablecoin Terra (LUNA). However, since Kwon’s arrest, the value of the stablecoin has plummeted and is currently trading at $0.000083, despite being pegged to the US dollar at a 1:1 ratio.
Featured image from iStock, chart from TradingView.com
Source: https://bitcoinist.com/crypto-giant-do-kwons-bail-revoked-in-montenegro/