Bail Revoked for Crypto Executives Do Kwon and Han Chong-joon in Montenegro
Unsuccessful Bid to Flee Montenegro
Terraform Labs co-founder Do Kwon and former chief financial officer Han Chong-joon find themselves back behind bars in Montenegro, despite previous bail arrangements. The duo, previously living in Serbia, was caught attempting to exit Montenegro using falsified documents.
Bail Reconsideration Following Prosecutor’s Appeal
Kwon and Chong-joon had initially been granted a release to house arrest by the Basic Court in Montenegro’s capital Podgorica on May 12, on a bail amounting to 400,000 euros ($435,000) each. Their defense team proposed the bail terms. However, prosecutors appealed the decision, leading the Basic Court to reconsider their bail.
South Korea and United States Seek Extradition
South Korean and U.S. authorities have expressed interest in Kwon’s extradition. The crypto executive also faces charges in Singapore. U.S. prosecutors have levelled eight charges against Kwon, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation.
Multiple Legal Actions Against Kwon
In addition to criminal charges, Kwon is also on the receiving end of several lawsuits. The U.S. Securities and Exchange Commission had filed a lawsuit against him even before his arrest. Moreover, a class-action suit has been filed in California.
Imprisonment and Extradition Possibilities
Kwon could face up to 40 years of imprisonment in South Korea and an additional five years in Montenegro. The Montenegrin trial is set for June 16. While Montenegro has an extradition treaty with the U.S., it doesn’t share such agreements with South Korea or Singapore.
Elusive Life after Terra’s Collapse
Kwon has maintained a low but existent profile since the downfall of the Terra ecosystem in May 2022. Despite an Interpol Red Notice issued against him, Kwon continued to deny he was in hiding and stayed active on social media. It later emerged that Kwon and Chong-joon were residing in Serbia. Interestingly, Kwon had established a consulting company in Serbia after the issuance of the Red Notice.