- Regardless of the original favorable ruling, a higher court in Montenegro denies bail.
- Terra (LUNA) founder Do Kwon will stay behind bars until the forgery case is solved.
- Do Kwon and TerraForm are likewise charged with market manipulation by the SEC.
The High Court of Montenegro overturned the preliminary decision by a Podgorica court to provides TerraForm Labs founder Do Kwon bail. At the beginning, the Montenegrin law granted the proposed $436,400 bail for both defendants – Do Kwon and his travel partner Han Chang-joon.
Nonetheless, the High Court vetoed this decision, which was taken against plenty of state attorneys’ recommendations not to provides the evasive cryptocurrency entrepreneur bail. Montenegrin lawyers stated that the cryptocurrency fugitive is definitely “a flight risk” and has no plausible intention to stay in the Balkan country.
In the end, this implies that the founder is in for an extended stay in one of Europe’s most notorious prison systems, often condemned by human rights activists. Mr. Kwon is facing document forgery charges, as the pair were captured attempting to board a private jet to Dubai with a stash of fake documents.
Although while the document forgery case is is still to be resolved, Do Kwon faces more brushes with the law on his home soil of South Korea and the United States. The South Korean authorities have establish a special task force to investigate the market manipulation of TerraForm Labs. The blockchain tech company resurfaced in South Korea 1st before switching to Singaporean headquarters.
Elsewhere, the United States Securities and Exchange Commission (SEC) charged TerraForm Labs and its CEO with defrauding customers and manipulating the price of the crypto tokens in the Terra (LUNA) Luna ecological system. This brought about terrible financial losses for investors, who were informed the malfunctioned Terra (LUNA) Classic USD (USTC) and sister crypto token $LUNC were “safe investments.”
In the end, South Korean authorities have more chances to reach for Do Kwon’s repatriation, as the special task force likewise targets nine other co-founders of the struggling blockchain tech company. Still, the SEC, South Korean authorities, and Singapore will likely be joining forces to win clarity and have an opportunity at retrieving the embezzled funds.
The other side
- Reports by Bloomberg, the High Court of Montenegro already has a decision regarding Do Kwon’s extradition.
- The lower court of Podgorica must decide, per the High Court, to starting the deal.
Why This Matters
Terra (LUNA) Luna’s collapse in May 2022 resulted in a market-wide cascading effect linked to around $2 trillion in cryptocurrency funds being wiped out.
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