The release of Terraform Labs’ co-founder, Do Kwon, on a $440,000 bail has been appealed by prosecutors in Montenegro. Kwon was apprehended earlier this year in the Balkan country after reportedly being in hiding for several months. Regulators and agencies have accused Kwon of evading justice after the massive collapse of LUNA/UST by frequently moving from one location to another.
Prosecutors Oppose Bail Decision
The District Prosecutor’s Office in Podgorica, Montenegro, has appealed against the court’s decision to grant bail to Kwon and his associate Han Chang-Joon, who also filed for release on a $440,000 bail each. However, the Basic Court in Podgorica allowed their request under the condition that they would stay in an appointed location once the sum is paid. Rumors suggest they can temporarily live in an apartment owned by a local lawyer in relation to the defendants. Nonetheless, Kwon and Chang-Joon will remain in detention until the magistrates decide whether to approve or reject the prosecutors’ appeal.
The possible release of Kwon is expected to stir heated debates among crypto enthusiasts amid suspicions that he was the main culprit behind the multi-billion LUNA/UST crash in 2020, which resulted in massive investor losses and undermined the reputation of the digital asset industry. Kwon has been requested by the United States and South Korea, his homeland, to face justice for his alleged fraudulent actions. If found guilty by South Korean authorities, he could serve a 40-year prison sentence, while the punishment in the US could be even more severe.
Kwon Under Attack on All Fronts
The US Securities and Exchange Commission (SEC) recently obtained approval to access records of the Luna Foundation Guard stored at the Monetary Authority of Singapore (MAS), which could indicate Kwon’s involvement in the Terra meltdown. The Luna Foundation Guard is a non-profit organization that raised funds to maintain the $1 valuation of the algorithmic stablecoin UST, which plummeted to almost zero last year, leading to significant losses for numerous investors.
In addition, South Korean authorities have seized about $176 million in assets that personally belong to Kwon to examine whether they were acquired through illegal means. Cryptocurrencies, real estate, expensive cars, and money deposits are among the assets that have been blocked.