Terra founder granted bail as prosecution appeal dismissed

abdelaziz Fathi

Terraform Labs CEO Do Kwon’s request to stay out of jail in Montenegro until his trial for allegedly using a forged passport was granted following the dismissal of an appeal by prosecutors.

Terraform founder Do Kwon

Earlier in May, a court in Montenegro granted bail to Do Kwon, who is facing charges of multibillion-dollar fraud in the US. Two weeks later, the country’s high court overrode the decision that would release the detained Terra Labs founder.

Nevertheless, the Montenegrin court ruled on June 2 that the appeal made by the State Prosecutor’s Office against the earlier bail agreement would not be upheld. As a result, both Do Kwon and Terraform Labs’ chief financial officer Han Chang-Joon will be able to await further legal proceedings while under house arrest in Montenegro.

The South Korean cryptocurrency entrepreneur will be released on a €400,000 ($436,000) bail while awaiting trial for local charges. Terra’s former finance officer will be also released from custody in Montenegro on the same conditions.

As part of their bail terms, both Do Kwon and Chang-joon will remain under surveillance and restricted from leaving their house. The two men already faced their initial court hearing since being apprehended in March at the Podgorica airport for attempting to quit the country with forged travel documents.

Initially, the state prosecutor had sought to deny the bail request, citing that Kwon and Han possess adequate financial resources but has no interest in staying in Montenegro.

Both US and South Korean officials are seeking to extradite Terraform Labs CEO Do Kwon. Prosecutors in New York charged the 31-year-old entrepreneur with eight criminal indictments for defrauding American investors who purchased Terra USD and Luna.

Earlier in February, the Securities and Exchange Commission accused Do Kwon with fraud, alleging that he orchestrated a multibillion-dollar crypto asset securities fraud. The SEC alleges that Kwon marketed the so-called “algorithmic stablecoin” TerraUSD and a series of inter-connected digital assets as profit-bearing securities, claiming that the tokens would increase in value.

Globally, investors in TerraUSD and Luna lost an estimated $42 billion. Worse still, the meltdown has shaken confidence in the broader cryptocurrency industry and led to the failure of several major crypto companies including crypto lender Celsius and crypto fund manager Three Arrows Capital.

Read this next

Industry News

“Unconscionable conduct”: ASIC fines National Australia Bank $2.1m for overcharging customers

NAB faces a $2.1 million penalty for unconscionable conduct, as the Federal Court rules the bank knowingly overcharged customers, and took over two years to rectify the situation.

Industry News

SEC charges $15 million Ponzi scheme targeting Mexican-American community

Armando Gutierrez Rosas purportedly intended to invest these funds in U.S. real estate and mining operations in Mexico, assuring investors of monthly returns as high as 10 percent. Instead, Gutierrez operated a Ponzi scheme, diverting investor funds to cover his personal expenses, which notably included the acquisition of a $2.5 million mansion in Texas.

Digital Assets

Chainlink launches cross-chain interoperability protocol on Arbitrum One

Chainlink and Arbitrum join forces to bring the Chainlink Cross-Chain Interoperability Protocol (CCIP) to Arbitrum One, offering Web3 developers a powerful tool to build secure and interconnected applications across blockchains.

Executive Moves

STT appoints Brian Saldeen as Senior Risk & Margin Product Manager

Sterling Trading Tech welcomes Brian Saldeen to spearhead the development of their Risk & Margin offering, bolstering their cutting-edge solutions in the capital markets.

Industry News

Altruist eliminates brokerage account fees for advisors who choose their custody

Altruist, the modern custodian for independent RIAs, takes a bold step by eliminating portfolio accounting software expenses for all Altruist brokerage accounts, potentially saving advisors tens of thousands annually.

Retail FX

Exploring India’s Forex Market Timings With Insights From Experts

Traders Union experts identify the most profitable Forex trading windows for Indians as between 6.00-12.00 GMT and 18.00-0.00 GMT, emphasizing the importance of timing and market conditions in a rapidly evolving Indian financial landscape.

Retail FX

Capital.com UK doubles revenues, profit in 2022

The UK business of multi-licensed online brokerage group Capital.com has reported its financials for its new fiscal year ending December 31, 2022. The group managed to best most of last year’s performance metrics, having grown its net income, and FY 2022 turned into the best revenue since it was founded.

Digital Assets

Alchemy goes legit in US with Money Transmitter License

Cryptocurrency payment gateway Alchemy Pay has marked a pivotal moment in its global expansion strategy by securing a crucial payment license in the United States. The company has obtained a Money Transmitter License in the state of Arkansas, joining the ranks of crypto giants like Coinbase and Jack Dorsey’s Block.

Digital Assets

eToro crypto business gets CySEC license

eToro has received approval from CySEC to operate as a crypto asset services provider, providing a regulatory stamp for the company’s digital assets and cryptocurrencies business in Cyprus and Europe.