The high court of Montenegro’s capital city Podgorica has revoked its decision to grant bail to Terraform Labs chief executive officer Kwon Do-hyeong and former chief financial officer Han Chang-joon.

See related article: From billionaire to Montenegro jail: The rapid rise and fall of Terra chief Do Kwon

Fast facts

  • Both Kwon and Han will remain in jail, while the next hearing for the two South Korean nationals is expected to take place on June 16.
  • The two were arrested at Podgorica airport on March 23 for allegedly attempting to fly out of the country using fake passports. Kwon, a South Korean national, was subject to an Interpol Red Notice that requested law enforcement agencies to detain him.
  • Kwon and Han denied the charges of forging travel documents, while their attorneys proposed that they be given bail at 400,000 euros (US$437,000) each.  The local court granted the request May 12. Montenegrin prosecutors then filed an appeal against the court decision less than a week later. 
  • Terraform’s algorithmic stablecoin and cryptocurrency project Terra-Luna collapsed in May 2022, wiping out over US$40 billion in market capitalization. Kwon is wanted in the U.S. and South Korea, where prosecutors accuse him of fraud, securities law violations and several other charges related to the collapse. 
  • Kwon has repeatedly denied all the allegations against him. He admits that mistakes were made in the Terra-Luna crypto project managed by his company Terraform Labs. However, he argues there was never any intent to deceive investors. 
  • Kwon has claimed that charges against him in South Korea are politically motivated.

See related article: South Korea sets May 26 trial date for Terraform Labs co-founder Daniel Shin, others