Prosecutors appeal bail decision for Terra founder amid allegations of market manipulation – Cryptopolitan

The prosecutors in Montenegro have appealed against a local court’s decision that granted bail to Kwon Do-hyeong, the founder of Terraform Labs, and his associate Han Chang-joon.

During the hearing, accusations were made against Do Kwon, the founder of Terraform Labs, stating that he operated and organized a fraudulent cryptocurrency firm in South Korea and the United States (U.S.). As a result of these actions, the firm’s TerraUSD and Luna coins experienced a collapse.

On March 23, authorities apprehended Kwon and Han, Terra’s former chief financial officer, at Podgorica airport in Montenegro. They were accused of trying to leave the country using counterfeit passports and were subject to an Interpol Red Notice, which urged law enforcement agencies to arrest them.

On April 21, the Montenegrin court formally charged both South Korean individuals with the offense of forging travel documents. However, Kwon and Han firmly denied the allegations, and their lawyers suggested they should be granted bail, proposing a hefty amount of 400,000 euros (equivalent to US$437,000) each. Surprisingly, the local court approved their bail request just last Friday.

Since the arrest of Kwon, he has faced numerous charges which have been laid against him in court. Moreover, the court has frozen all of Do Kwons personal accounts, which hold a whopping 233.3 billion Korean won ($176 million), as part of the ongoing investigations.

South Korean prosecutors are eagerly pursuing Kwon’s extradition, while their American counterparts have choreographed a captivating performance of charges.

This intricate routine features eight distinct counts, showcasing a dazzling array of accusations, including commodities fraud, securities fraud, wire fraud, and a thrilling conspiracy to defraud and engage in market manipulation. 

If the court denies the appealed bail, the two individuals will be released but must stay inside a designated place. Sources familiar with the reports state that once they are released, they will reside in an apartment owned by the company of Kwon’s local lawyer’s female partner.

However, Kwon firmly denies all the allegations against him, asserting that the errors that occurred were attributable to the management of the Terra-Luna crypto project under his Terraform Labs. He maintains that there was no intention to deceive investors.

Furthermore, Do Kwon declares that the charges against him in South Korea are false and driven by political motives.