Terraform Labs Co-Founder Do Kwon to be Released on $436k Bail in Montenegro

Do Kwon, co-founder of Terraform Labs, is expected to be released from prison on $436k, following a court decision in Montenegro, according to reports from local news outlet Pobjeda.

Kwon was arrested in March, along with fellow South Korean national and Terraform’s former chief financial officer, Han Chang-joon, on charges of using a fake passport to leave the country.

The two men were allegedly attempting to fly to Dubai with false Costa Rica travel documents. Han is also expected to be released on a $436k bond. However, the prosecution has three days to appeal the decision.

The collapse of TerraUSD, the stablecoin created by Terraform Labs, last year wiped out tens of billions of dollars for investors, marking the beginning of a series of crises that hit the crypto market throughout 2022.

The bankruptcies of crypto lender Celsius and exchange giant FTX were also among the market shocks.

Kwon faces legal challenges in Korea and the U.S. related to TerraUSD’s collapse. A South Korean court issued an arrest warrant for Kwon last September, accusing him of violating capital markets laws.

Prosecutors from Korea reportedly traveled to Serbia in February to locate him. In the U.S., Kwon faces civil charges from the Securities and Exchange Commission, alleging that he failed to provide full, fair, and truthful disclosure to the public regarding crypto asset securities.