Do Kwon finds himself once again in the confines of custody as a Montenegrin court revokes his bail, as reported by Bloomberg.
Just a few weeks ago, the cofounder of Terraform Labs, Do Kwon, received the green light to be released on bail, offering a glimmer of hope in his legal saga.
Kwon stands accused of forgery relating to counterfeit travel documents, vehemently refuting these allegations against him.
In a dramatic turn of events, the disgraced crypto mogul, Do Kwon, saw his hopes of temporary freedom shattered as a Montenegrin court swiftly revoked his bail, according to an exclusive report by Bloomberg on Wednesday. The Terraform Labs cofounder, whose fall from grace has captivated the financial world, will now remain in custody, alongside his former chief financial officer, Han Chong-joon, as the high court in Montenegro’s capital city, Podgorica, overturned their previous bail approval.
Just a mere two weeks ago, a lower court had granted Kwon and Han permission to post bail, amounting to a staggering $436,000 each. However, their apparent reprieve was short-lived, as prosecutors moved swiftly to appeal the decision, ultimately leading to the high court’s reversal.
Speaking on behalf of the court, Marija Rakovic, a court spokesperson, revealed that the “Basic court should now make another decision, taking into account what the High Court ruled.” She emphasized that there is no legal limit to the number of motions that can follow between the respective judges when it comes to determining bail for the two South Korean nationals.
The charges against Kwon and Han stem from their ill-fated attempt to board a flight from Podgorica to Dubai back in March, allegedly using counterfeit passports and travel documents. However, both individuals vehemently deny the allegations, claiming their innocence amidst the legal maelstrom surrounding them.
While Kwon finds himself confined in Montenegro, awaiting trial for his alleged transgressions, his legal woes extend far beyond its borders. The embattled entrepreneur faces indictments for criminal fraud in both the United States and South Korea, as both countries vie for his extradition. Notably, the Securities and Exchange Commission (SEC) has also thrown its weight behind the charges, filing civil allegations against Kwon for purportedly violating registration and anti-fraud regulations.
The ripple effect of Kwon’s downfall has been felt throughout the cryptocurrency industry. The implosion of TerraUSD and Luna, the algorithmic stablecoin and sister token created by Terraform Labs, reverberated with catastrophic consequences, eradicating billions of dollars in investor wealth and igniting a widespread panic. As the news broke, major players in the crypto realm, such as hedge fund Three Arrows Capital, centralized lender Celsius, and digital asset brokerage Voyager Digital, found themselves teetering on the edge of bankruptcy, a direct result of the contagion concerns triggered by Kwon’s precipitous fall.
As the global crypto community anxiously watches Kwon’s legal battles unfold on multiple fronts, the question remains: will justice be served, or will the once-mighty mogul manage to navigate his way out of the storm that threatens to consume him entirely? Only time will reveal the fate that awaits this fallen titan and the lasting impact his demise will have on the ever-evolving world of digital finance.
