The high court of Montenegro in Podgorica overturned a decision from two weeks ago to release Kwon and Terraform’s previous chief financial officer Han Chong-joon on €400,000 ($436,000) bail each.
And once, the court had ordered that the men would be placed under house arrest in Montenegro while they awaited trial. Bloomberg reports that Kwon “remains in jail” now following today’s decision. The decision to revoke bail on Wednesday likewise applies to Chong-joon, a court spokesperson informed the latest information outlet.
Following the lower court granted Kwon and Chong-joon bail, the prosecution appealed the decision. Court spokeswoman Marija Rakovic told Bloomberg that the matter will now go back to the lower court.
Kwon and Chong-joon have been charged with forging official documents after attempting to fly to Dubai from Podgorica in March with allegedly fake Belgian and Costa Rican passports. In court appearances so far, both men have maintained that the passports are genuine.
Apart from the forgery charges, the Kwon likewise faces criminal charges in the United States and South Korea. South Korea has had a warrant out for Kwon’s arrest since September, alleging that he violated financial resources market laws.
In February, the United States Securities and Exchange Commission filed civil charges against Kwon for violating the registration and anti-fraud provisions of the securities and exchange acts.
The May 2022 collapse of Terraform Lab’s ecological system, which included its algorithmic crypto stablecoin TerraUSD and governance crypto token Terra (LUNA) (LUNA), set off an industry-wide panic as other established corporations crumbled.
Cryptocurrency hedge fund Three Arrows Capital (3AC), broker Voyager Digital, and lender Celsius Network LLC Network all filed for bankruptcy soon after Terra (LUNA) got wiped out. In the months that followed, cryptocurrency lender BlockFi and cryptocurrency exchange FTX Trading Ltd likewise dropped. They were less directly in Terra’s blast radius, but still victims of the contagion it set off.