Do Kwon, the co-founder of the blockchain platform Terra, alongside his former aide Han Chang-joon, is facing charges in Montenegro for their alleged use of “falsified documents.” To ensure the two men are present for the current charges, lawyers have asked for 400,000 euros, the equivalent of $436,000, to provide bail with the requirement that Kwon and Chang-joon abide to home-confinement conditions. This included being restricted to a particular Montenegro apartment with periodic check-ins with state authorities. Kwon and Chang-joon have denied the charges presented to them and the prosecutors have objected to the expected bail, with the trial due to start on June 16.

Prior to the arrest of Kwon and Chang-joon, 2021 began to bring the collapse of the Terra platform and with it the depegging of the TerraUSD (UST at the time) stablecoin, which further caused a market crash affecting the cryptocurrency landscape. In response, South Korean authorities have frozen reported 176 million worth of Kwon’s personal assets, as his case is still being processed.

Sunny Aggarwal, co-founder of Osmosis Labs, described the situation as “incredibly hard” having already seen Terra grow to become one of the biggest firms in the DeFi and blockchain sector. Unfortunately, the community at large has now had to pay the price for such a collapse and the Kwon’s legal situation is the latest step in the case against his involvement in the events leading up to the depegging of the TerraUSD stablecoin.

Though the US and South Korean authorities have sought to have Kwon extradited, his and Chang-joon’s court proceedings this June are the first step in judgment on the matter. The community can only hope that with a clear understanding of the evidence, the court can bring a sense of justice to the situation so that Terra’s victims can move on.



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