Do Kwon, co-creator of the now-defunct Terra (LUNA) blockchain, continues to reside behind bars, with the lower court set to revisit its earlier verdict concerning his bail proposal.
Another Blow for Do Kwon
Do Kwon, previously a luminary in the crypto world as the co-founder of the failed Terra (LUNA) blockchain, is currently denied the light of freedom after his initial bail approval for approximately $430,500 was overturned.
This sudden turn of events transpired after a high court ruling in the capital of Montenegro. It superseded the lower court’s decision to set Do Kwon free in exchange for a bail sum of €400,000. Consequently, Kwon remains in confinement, awaiting the next legal action.
Judicial Tug-of-War: Prosecutors Challenge Lower Court’s Decision
Earlier this month, the lower court’s decision was swiftly contested by the prosecutors, propelling the matter to the jurisdiction of the higher court. Following this development, the lower court is now obligated to reassess its previous ruling, bearing in mind the high court’s directives.
Marija Rakovic, the court spokesperson, opined, “The Basic court is now required to arrive at a revised decision, considering the High Court’s verdict. Legally, there is no cap on the number of motions that can be exchanged between the concerned judges while deliberating on bail for the two South Korean nationals.”
The high court’s decision extends to Kwon’s former colleague and chief financial officer, Han Chong-Joon. Both individuals have refuted accusations of document forgery, arising from allegations of their journey to Montenegro using counterfeit passports.
In March, Kwon’s arrest in Montenegro caught the attention of international entities, including the United States, South Korea, and Singapore, all of whom sought his extradition.
Legal Woes Deepen: SEC Charges and Terra’s Downfall
The legal tribulations of the Terra co-founder intensified when the Securities and Exchange Commission (SEC) charged him with fraud concerning Terra’s UST and LUNA tokens. Moreover, he was later indicted for allegedly liquidating 10,000 Bitcoin (BTC) via a Swiss bank.
The downfall of Terra in May 2022 triggered a domino effect, causing a ripple of insolvencies throughout the crypto industry that lasted until the end of the year. This incident has cast a shadow over Kwon’s reputation, transforming him into one of the most vilified figures in the industry.
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