The Higher Court of Montenegro has denied bail of Terraform Labs co-founder; earlier on May 18 Lower Court agreed to grant bail to Do Kwon and one other executive of Terraform Labs for the sum of $440,000.
The information on bail denial was shared with Bloomberg by a spokesperson of the Higher Court of Montenegro. He said that after the rejection of bail, Do Kwon and Chang-Joon would remain in jail till further decision.
After the Court’s decision, the regional prosecutors highly opposed the bail of Do Know, and some leading crypto lawyers believed that the co-founder might be sentenced to jail for 40 years in Asia, varying the charges.
Both the executives of Terraform Labs were detained at Podgorica airport by Montenegro police; the Interpol department shared the news of the arrest. The regulators claim that the records might reveal Kwon’s involvement in Luna Collapse.
The United States, South Korea, and Singapore requested the government of Montenegro to hand over Do and his executive to them because of charges against them in the region. He was on the radar of all global regulators, including Interpol, who issued a red alert notice against Do Kwon last year.
Primary Allegation on Terraform Co-Founder
The unprecedented demise of LUNA and Terra left many unanswered questions in the crypto industry. Both co-founders of Terraform Labs are facing numerous charges in their native countries, including the U.S., Singapore, and a few others.
Korean prosecutors blamed Kwon for the failure of Luna and accused him of being very well aware of the impending collapse of the UST stablecoin. The loss wiped out billions of dollars from the crypto market in just a few months.
According to the reports, giant investors of Terraform Labs are Arrington Capital, Lightspeed Ventures Partners, Coinbase Ventures, and Galaxy Digital. The Celsius and 3AC bankruptcy is interconnected with the collapse of LUNA.
Other than raising investment, Terraform Labs invested in more than 17 companies, including crypto-focused and traditional organizations. The company’s most recent investment was Flipside Crypto when it raised Series-A $50 million in funding.
The media source discloses that the prosecutor of Kim & Chang visited Montenegro to meet Kwon after his arrest by the police administration. Reports indicate that the prosecutor also spoke with the Ex-Chief Financial Officer of Terra Labs.
Because of the Terra LUNA collapse, approximately thousands of billions of dollars vanished from the market in just a couple of weeks.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/05/25/do-kwon-lower-courts-bail-verdict-canceled-by-high-court/