One of the latest developments in the ongoing trial of Terraform Labs co-founder is the reapproval of a $430,000 bail request for Do Kwon, by a Montenegrin court.
Kwon is facing charges of fraud and money laundering in relation to an alleged scheme involving the stablecoin UST, which is backed by Terraform Labs. According to the prosecutors, Kwon and his associates manipulated the price of UST by creating fake demand and supply, resulting in losses for investors and traders.
Kwon has denied any wrongdoing and claimed that he is a victim of a political witch hunt. He has also argued that UST is not a security but a utility token that serves as a medium of exchange on the Terra blockchain, which supports various decentralized applications and protocols.
Do Kwon Situation Makes Another Headline
The High Court of Podgorica annulled the previous ruling that granted bail to Kwon and Han Chong-Joon, his former CFO. The court said they did not provide concrete evidence of their assets’ value. Kwon and Joon will have to pay $430,000 each and stay in their lawyer’s apartment under police supervision.
The Basic Court had initially agreed to release Kwon and Joon from custody and let them live in a provided address until the next trial hearing, which was set for June 16. The court accepted the bail money that was deposited last week by Kwon’s wife.
The prosecutors challenged the decision, arguing that Kwon and Joon had no real reason to remain in Montenegro until the next hearing date. They appealed to the High Court, which overturned the lower court’s decision. Kwon and Joon will remain in jail until the court proceedings are over.
Kwon denies that he tampered with the documents. The authorities had been hunting for the elusive fugitive for months before they captured him as he was boarding a private jet to Dubai. He and Joon could face up to five years in jail if convicted.