Do Kwon, the founder of Terraform Labs, which launched Terra and Luna cryptocurrencies, has been arrested on the grounds of traveling to Montenegro with forged documents and has subsequently been granted €400,000 bail. According to local reports, Kwon and Terraform’s chief financial officer, Han Chang-Joon denied all charges of document forgery in the Basic Court of Montenegro’s capital Podgorica. During the hearing, the defense lawyers requested the court to allow Kwon and Han to leave the apartment during prohibition, proposing a combined amount of €400,000 bail for the two and proposed for them to report to the state authority periodically. The state prosecutors objected to the decision, arguing that Kwon and Chang-Joon had no interest in remaining in Montenegro until the court date and the court set June 16 as the next hearing date. Furthermore, the US and South Korea requested the authorities to extradite Do Kwon and also hand over the computers of the two arrested Terraform executives.

Earlier in May 2022, the Terra-Luna ecosystem collapse led to the crypto market losing nearly $40 billion in the process. This debacle led to South Korean courts clubbing investor complaints about their losses in the two coins into a single case and pursuing the justice for Kwon and his associates. The accused has denied any wrongdoing, claiming that his failed business strategies were the only cause for the collapse. Kwon has failed to answer the summons by South Korean authorities and has been evading arrest ever since.

Despite Kwon’s general denial of all charges, the Montenegro authorities have imposed bail on him and have set the date of further proceedings. For now, the investors who have been impacted by the Terra-Luna collapse are hopeful of justice on the horizon, with the Montenegro Court’s decisions playing a pivotal role in that process.



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