A court in Montenegro has repealed a lower court’s decision under which to release Terraform Labs co- founder Do Kwon on bail, reports by Bloomberg News.
A court spokesperson stated a high court in Montenegro’s financial resources overturned the earlier decision and Kwon remains in jail, Bloomberg reported.
This likewise applies to Terraform Labs’ previous Chief Financial Officer Han Chong-joon, reports by Bloomberg.
The case was sent to the High Court in Podgorica, the country’s financial resources, earlier this week, after prosecutors appealed against the bail terms to release Kwon and Han for $436,000 each.
Kwon had been on the run for months after the demise of Terra, which was behind the algorithmic crypto stablecoin TerraUSD that dropped into a tailspin last year.
Kwon and Chong-joon were accused of forgery by Montenegro prosecutors the previous 30 days for allegedly using false passports from Belgium and Costa Rica.
Both have pleaded not guilty.
Wanted around the world
Search warrants for Kwon’s arrest were announced in South Korea in September and he was following that arrested in March.
In the United States, the Securities and Exchange Commission accused Kwon and his company of defrauding investors.
The agency stated Kwon and Terraform promoted their cryptocurrency by repeatedly claiming that the crypto tokens would boost in value.
The complaint likewise went into detail about other happenings at the company, including that TerraUSD had fallen from its peg before in May 2021.
TerraUSD is an algorithmic crypto stablecoin that uses market incentives through algorithms to sustain a stable price.
TerraUSD been the largest algorithmic crypto stablecoin before losing its $1 peg, causing billions to be wiped out.
The fallout garnered attention from United States lawmakers and Treasury Secretary Janet Yellen who reportedly calling for regulation of stablecoins.
“I think that simply illustrates that this is a rapidly growing product and that there are dangers to financial stability,” Yellen stated at a Senate Banking Committee hearing last year.
