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An appeal against an earlier bail agreement by prosecutors was dismissed, according to a court release, allowing Do Kwon and Terraform Labs CFO Han Chang-Jun to await further trial under house arrest in the country.
The court re-adopted the bail conditions originally set out at the May 12 hearing, and the couple had to pay $436,000 (€400,000) each to be released from custody. Do Kwon and Chang-Jun are currently under strict bail and cannot leave the latter’s official residence in Montenegro.
The couple will be closely monitored by the local police. If any of the duo of the two Terraform Labs leave the home or breach the controls, the deposit will be forfeited.
Kwon and Chang-Jun provided personal and financial information to local authorities, including proof of a sales contract and title deed for an apartment, parking space, and basement owned by Chang-Jun.
Kwon reportedly provided an invoice for the vehicle as well as bank statements with bail conditions set in such a way that the defendants would not be advised to flee the country.
Kwon and Chang-Joon were arrested in Montenegro in March 2023 after allegedly using fake travel documents while trying to leave the country. In October 2022, both had their original passports confiscated in South Korea.
Related: Hacking: Terraform Labs co-founder Do Kwon reportedly arrested in Montenegro
The High Court of Podgorica noted that verification of the authenticity of the Belgian passports and identity cards held by the couple would require more time, while stressing that the agreed amount of bail “is a sufficient guarantee of the presence of the defendants.”
Terraform Labs co-founder Do Kwon was released on bail in Montenegro after the Podgorica District Court rejected an appeal by prosecutors on June 2.
Do Kwon remains a wanted man in a number of jurisdictions. South Korean authorities want to extradite the co-founder of Terraform Labs for investigating the infamous crash of the algorithmic stablecoin Terra-LUNA, which wiped out about $40 billion from the cryptocurrency market in June 2021.
Interpol also issued a red notice to Kwon in connection with the allegations against Kwon in South Korea, while he also faces multiple fraud charges in the United States.