Do Kwon, co-founder of defunct crypto startup Terraform Labs, is set to be released on bail after being detained in Montenegro.
The Basic Court in Podgorica announced Friday that it agreed to a bail amount of 400,000 euros (approximately $434,000) for Kwon, who will also be placed under house arrest. The former chief financial officer of Terraform, Chang-joon Han, will be released on the same bail amount and conditions.
Kwon and Han were arrested at the Podgorica airport in March while attempting to travel to Dubai. They were reportedly carrying fake passports from Belgium and Costa Rica, as well as at least one legitimate passport from their home country of South Korea.
In Montenegro, the use of fraudulent documents is a serious offense that can carry a prison sentence of up to five years.
Kwon had earlier pleaded not guilty to allegations of forging his passport and travel documents.
In their bail request, Kwon and Han assured the court that they would not evade the legal process, promising to regularly respond to court summons and remain available to face any legal responsibilities.
The Terra ecosystem’s downfall in May
2022 played a significant role in the eventual decline of the cryptocurrency industry.
In what has been dubbed as the “crypto winter,” major cryptocurrencies experienced a sharp drop in prices and several crypto companies faced bankruptcy.
A South Korean court issued an arrest warrant for Kwon in Sept. 2022, accusing him of violating capital markets laws.
The U.S. Securities and Exchange Commission (SEC) filed civil charges against Kwon in Feb., alleging that he failed to provide accurate and truthful disclosures required for various crypto asset securities.