Do Kwon, co-founder of Terraform Labs, has had his bail revoked in Montenegro, as reported by Bloomberg. The decision came from the high court in Podgorica, overturning a previous ruling that had granted Kwon and Han Chong-joon, Terraform’s former chief financial officer, bail of €400,000 ($436,000) each. The prosecution had appealed the initial decision made by the lower court, leading to the revocation of bail. The case will now be sent back to the lower court for further proceedings.
Kwon faces forgery charges and international legal battles
Kwon and Chong-joon are facing charges of forging official documents. This stems from an incident in March when they were apprehended while attempting to board a flight to Dubai from Podgorica. It is alleged that they were in possession of counterfeit Belgian and Costa Rican passports. Throughout their court appearances, both individuals have steadfastly maintained the authenticity of the passports in question.
Apart from the forgery charges in Montenegro, Kwon is also grappling with criminal charges in both the United States and South Korea. South Korea issued an arrest warrant for Kwon in September, accusing him of violating capital market laws. In the United States, the Securities and Exchange Commission (SEC) has taken civil action against him, citing violations of registration and anti-fraud provisions within the Securities and Exchange Act.
Terraform Labs’ Ecosystem Collapse Sent Shockwaves, Resulting in Bankruptcies
The downfall of Terraform Lab’s ecosystem in May 2022 sent shockwaves throughout the industry. The ecosystem included TerraUSD, an algorithmic stablecoin, and Terra (LUNA), a governance token. The collapse triggered a wave of panic, resulting in the subsequent bankruptcies of prominent firms like Three Arrows Capital, Voyager Digital, and Celsius Network. Although BlockFi and FTX were not directly within the blast radius of Terra’s demise, they too suffered as a result of the ensuing contagion.
The implications of these events extend far and wide, casting a shadow over the reputation and future prospects of Terraform Labs and its co-founder, Do Kwon. As legal proceedings unfold in Montenegro, the United States, and South Korea, the fate of Kwon and the repercussions for the broader cryptocurrency industry remain uncertain.
Image Credit: Bloomberg