After being detained in Montenegro at the Podgorica airport in March while attempting to travel to Dubai with falsified Costa Rican travel documents and Hon Chang Joon, Terraform Labs CFO, Do Kwon has been granted bail. The pair traveled with falsified documents because South Korean authorities confiscated their passports in October 2022.
The SEC had accused Kwon of fraud, and South Korean authorities issued a warrant for his arrest in September 2021. These actions came after the Terra crash when the TerraUSD algorithmic stablecoin depegged, wiping out $40 billion worth of market value. Prosecutors in Seoul froze upwards of $200 million in digital assets linked to Kwon, who was on the run until his arrest in Montenegro in March 2023.
On Friday, May 12, 2023, Montenegro approved the bail terms proposed by Terra founder Do Kwon’s lawyers. Kwon faces criminal charges of document forgery under Montenegrin law. Kwon and Han Chang-Joon, have been granted bail of $436,000 each and put under house arrest instead of being taken into custody. The court has stated that if the house arrest is violated, the bail will be entered into a special section of the court’s budget.
Additionally, the court will verify the authenticity of the travel documents and identity cards allegedly issued by Belgian authorities. Kwon’s lawyers requested these conditions one day before the court’s decision. The party has three days to repeal the decision if they are unsatisfied with it. A criminal trial for Do Kwon is set to begin in Montenegro on June 16.