Terra LUNA co-founder Do Kwon successfully appealed against the prosecution’s request to keep him in custody, and is out on bail as of June 5.
The Podriga Basic court overseeing the case granted the bail request and accepted the initial amount of $400,000. The high court had previously annulled the bail on May 18 after prosecutors alleged the bail amount was not a sufficient indicator of Kwon’s assets.
Prosecutors had requested the bail be denied on the basis that Kwon had not declared the full extent of his assets, and as such, the bail amount was too low.
However, the Basic court ruled that the disclosures were sufficient after verifying the information provided on the basis that Kwon and former Terra executive Han Chang-Joon are not citizens of the country. Additionally, it concluded that the bail amount was adequate to dissuade the two from fleeing.
As part of the bail, the court set conditions of house arrest and close monitoring. The two are not allowed to leave their apartment until the case is concluded. If found guilty, they face a prison sentence of three to five years in Montenegro.
The court also said that the fake documents need further verification from Belgian authorities and instructed prosecutors to do so.
The next hearing is slated for June 16.
Kwon’s home country South Korea and the U.S. are both looking to extradite and prosecute him locally for his part in the collapse of Terra LUNA and the billions in losses investors suffered because of it.
Both countries have filed requests for extradition with Montenegrin authorities. However, the country has rejected the initial requests and intends to prosecute Kwon for his local criminal offenses first.
It is unclear whether Montenegro will extradite Kwon to the U.S. or South Korea afterward.
The Montenegrin government said it will entertain extradition requests after he has been cleared of all charges or served the appropriate sentence in the country.
Kwon was arrested at an airport in Podriga, Montenegro in late March. He was detained by local authorities over using fake identifications documents to board a plane from Podriga to Dubai.
Authorities found three different passports on Kwon’s person, including a Belgian one.
He was subsequently arrested and later put on trial for his alleged criminal offenses within the country. Kwon has plead not guilty to all charges.
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