Last Updated on May 12, 2023 by Bitfinsider
According to the local news channel Pobjeda, the co-founder of Terraform Labs, Do Kwon, will be released from prison pending trial after a court in Montenegro accepted a €400,000 ($436,000) bail.
Kwon was arrested in Montenegro in March and charged with attempting to flee the country with a forged passport. According to Costa Rica’s interior ministry, Kwon and Han Chang-joon, the former chief financial officer of Terraform, attempted to board a private flight to Dubai using forged Costa Rican travel documents.
According to Pobjeda, the court also consented to release Han on a €400,000 bond. The prosecution has three days to lodge an appeal.
This week a year ago, TerraUSD, the stablecoin created by Terraform Labs and commonly known by its ticker UST, collapsed, wiping out tens of billions of dollars for investors. The crisis was the first of several to impact crypto markets in 2022, including the bankruptcies of crypto lender Celsius and exchange behemoth FTX. Kwon also confronts legal issues in Korea and the United States as a result of TerraUSD’s demise.
In September, a South Korean court issued an arrest warrant for Kwon on the grounds that he violated capital markets laws. In February, Korean prosecutors reportedly traveled to Serbia, which borders Montenegro, in an attempt to locate him.
In the United States, the Securities and Exchange Commission has also filed civil charges against Kwon, accusing the executive of failing to “provide the public with the required full, fair, and truthful disclosure for a variety of crypto asset securities.”
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