Montenegro prosecutors have filed an appeal against a local court decision to approve bail for the detained Terraform Labs chief executive officer Kwon Do-hyeong and his associate Han Chang-joon following allegations against the two of traveling on fake passports, according to South Korea’s Yonhap News.

See related article: Terraform’s Do Kwon pleads not guilty to passport forgery; lawyers propose US$437,000 bail

Fast facts

  • Kwon was arrested at Podgorica airport of Montenegro on March 23 along with Terra’s former chief financial officer Han for allegedly attempting to fly out of the country using fake passports. Kwon, a South Korean, was under an Interpol Red Notice that requested law enforcement agencies to detain him.
  • The Montenegrin court announced the indictment of the two on April 21. 
  • Both South Korean nationals denied the charges of forging travel documents, while their attorneys proposed that they be given bail at 400,000 euros (US$437,000) each, which the local court granted last Friday. 
  • Terraform’s algorithmic stablecoin and cryptocurrency project Terra-Luna collapsed in May 2022, blowing away 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, maintaining that mistakes were made in the Terra-Luna crypto project managed by his Terraform Labs, but there was no intent to deceive investors. Kwon also claimed that charges against him in South Korea are politically motivated.
  • The next hearing for Kwon and Han is expected to take place on June 16.

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