A Montenegrin court has allegedly overturned a lower court’s decision to release previous cryptocurrency mogul and Terraform Labs co- founder Do Kwon on bail. The high court in Podgorica likewise overturned the decision for Han Chong-joon, Kwon’s previous chief financial officer, reports by a Bloomberg report.
Cryptocurrency Mogul Do Kwon Faces Jail Time
Earlier these 30 days, the Basic Court in Podgorica had approved Kwon and Chong-joon’s release on bail to the tune of €400,000 ($430,500). Nonetheless, 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, indicated that the Basic Court would must make another decision according to the High Court’s ruling. There is no legal limit to the number of motions that can follow betwixt 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 United States authorities, who have accused them of laundering $700 Million through their digital currency exchange, Terraform Labs. The two men deny the states 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 rejected the allegations.
Nonetheless, the outcome of the legal proceedings against Kwon and Chong-joon will be closely watched by the cryptocurrency community as it can potentially have implications for the industry’s reputation. The arrest of high-profile figures in the cryptocurrency 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 likewise outlines the challenges faced by crypto-related enterprises in navigating a complex and evolving regulatory landscape. As the industry persists to grow and mature, it will be important for players in the space to prioritize compliance and work closely with regulatory authorities to secure a sustainable and trustworthy ecosystem.
Meanwhile, the destiny of Do Kwon and his previous CFO remains uncertain, with the likelihood of further motions and appeals in the next few weeks and months. The cryptocurrency 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 cryptocurrency industry, having co- established Terraform Labs, the company in charge of the crypto stablecoin Terra (LUNA) (LUNA). Nonetheless, since Kwon’s arrest, the value of the crypto stablecoin has plummeted and is as of now currently worth $0.000083, regardless of being pegged to the United States dollar at a 1:1 ratio.
Featured image from iStock, chart from TradingView.com