Montenegrin High Court Reverses Bail Decision for Terraform Executives – Investor Bites

SNEAK PEEK

• Podgorica high court revokes Terraform Labs executives’ bail, extending jail time.
• Terraform Labs’ CEO and ex-CFO accused of using forged passports.
• Terra-Luna’s collapse led to charges against CEO Kwon in the US and Korea.

Last week, the high court of Podgorica, the capital city of Montenegro, rescinded its decision to grant bail to Terraform Labs CEO Kwon Do-hyeong and former CFO Han Chang-joon. The South Korean nationals, embroiled in a high-profile legal tussle, will continue their wait behind bars until the next court hearing, scheduled for June 16. 

Based on reports, the arrest of Kwon and Han at Podgorica airport on March 23 triggered waves of discussion around the globe. Their apprehension transpired as they attempted to depart the country using falsified passports. This can be attributed to Kwon’s prominent appearance on Interpol’s Red Notice, a directive disseminated to global law enforcement agencies, mandating his capture.

On the other hand, the executives vehemently denied the charges related to creating forged travel documents. Consequently, their attorneys proposed a bail amount of 400,000 euros, or approximately US$437,000, for each individual. 

Despite the initial approval of this request on May 12 by a local court, Montenegrin prosecutors filed an appeal against the decision less than a week later. This resulted in the high court’s recent about-face on the matter.

The recent happenings have rekindled the memory of the collapse of Terra-Luna, an algorithmic stablecoin and cryptocurrency project managed by Terraform Labs. The event, which took place in May 2022, led to a staggering loss of over US$40 billion in market capitalization.

As the head of Terraform Labs, Kwon faces severe charges in the United States and South Korea. Prosecutors from both nations accuse him of fraud and securities law violations, among other charges, all tied to the Terra-Luna project’s downfall.

Despite the mounting legal pressure, Kwon maintains his innocence. He has repeatedly denied all the allegations against him. Although he admits that errors occurred during the management of the Terra-Luna crypto project, he contends there was no intent to deceive investors.

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• Source: https://investorbites.com/montenegrin-high-court-reverses-bail-decision-for-terraform-executives/