According to information relayed by Bloomberg, a high court in Montenegro has revoked a lower court’s previous decision to release Do Kwon, co-founder of Terraform Labs, the project behind the LUNA and UST cryptos, on bail.
Do Kwon’s case has attracted attention from the crypto community and the trade press. Do Kwon’s bail application has been rejected, meaning that he must remain in custody pending further legal proceedings. The precise reasons for this denial of bail have not been disclosed, but it would appear that the judicial authorities felt that his detention was justified in the interests of the investigation.
It seems that the prosecution is keen to keep Do Kwon in custody to prevent him from attempting to flee again. He had been arrested at Podgorica airport with false identity papers.
So Do Kwon will be making the rounds on his charges, first in Montenegro, where he is being held “only” for forging identity documents. After that, it is likely to be South Korea that will receive the detainee, the country having more complete evidence than the United States.
Earlier this month, a judge in Montenegro had authorized the release of the two South Korean nationals on bail of 470,000 dollars each. However, contrary to this decision, the High Court judge ruled that bail of 870,000 dollars was not a solid guarantee and that there was no point in Kwon and Chang-joon remaining in the country.