A branch of the Podgorica District Court in Montenegro has approved a second bail request for Do Kwon, the founder, and CEO of Terraform Labs.
Kwon and Terra’s former chief financial officer Han Chang-joon were originally granted bail in May for a combined sum of around $856,000. They were released on condition that they did not leave their apartment and continued to attend hearings.
However, Montenegro prosecutors appealed the decision at the High Court, and their motion was upheld, with Kwon and Han being taken into custody for a second time.
Kwon has since hired the world’s biggest law firm, Dentons. But it was a move by his Montenegro-based legal team that saw the Podgorica District Court rule in his favor for a second time late last week.
The lawyer Branko Anđelić confirmed that the duo must pay $436,000 each to secure bail. This gives Montenegrin prosecutors three days to appeal the bail terms.
Kwon and Han must remain in custody until the High Court delivers its verdict. But if it does not object, Kwon and Han could be released early this week.
The district court said it would need more time to verify Kwon’s claims that Costa Rica passports and other travel documents found on the duo at the time of their arrest were obtained through above-board methods.
Prosecutors claimed that the bail figure was not high enough. They stated that the defendants still posed a significant flight risk. And they argued that insufficient surveillance measures had been added to ensure they did not try to escape.
At a previous hearing, Kwon was asked to disclose the extent of his financial holdings. He replied that he jointly owned an apartment in South Korea that is worth “about $3 million.”
But he refused to put a value on his “other assets” (crypto holdings”). He said the “volatility of the market” prevented him from making an accurate assessment of their worth.
Han and Kwon are due in court again for another hearing on June 16.
The possibility of Kwon being released on bail again has been met with mixed reactions. Some have expressed concern that he could flee the country if released, while others believe that he is entitled to bail and should be allowed to await trial at home.
