Fugitive cryptocurrency entrepreneur Do Kwon, who has been in custody in Montenegro since March, may be released on bail as he awaits trial for document forgery. The Terraform founder was arrested at the capital’s airport carrying alleged fake travel documents. Kwon’s company’s dramatic collapse last year wiped out around $40 billion of investors’ money and rocked global crypto markets. Both Seoul and Washington are seeking Kwon’s extradition for his suspected role in fraud linked to the collapse.
Kwon Remains in Custody Pending Appeal
A Montenegro court has accepted bail of €400,000 ($435,000) each for Kwon and a companion he was arrested with in March. The court has ordered that they be released upon payment, but prosecutors are appealing the decision. The defendants will remain in custody until the outcome of the appeal. If released, they will be confined to house arrest and banned from leaving the apartment.
Kwon Facing Two Cases in Montenegro
Kwon, whose real name is Kwon Do-hyung, is facing two cases in Montenegro. The first case involves his alleged possession of forged travel documents, while the second case involves his possible extradition. Prior to his arrest, Kwon had been on the run for months after fleeing South Korea and then Singapore.
Cryptocurrency Sector Under Scrutiny
Kwon’s TerraUSD was marketed as a “stablecoin”, which is typically pegged to stable assets such as the US dollar to prevent drastic fluctuations in prices. Cryptocurrencies have come under increasing scrutiny from regulators after a string of recent controversies, including the high-profile collapse of the exchange FTX. The digital currency sector has also been hit hard by the demise of US crypto lenders Silvergate and Signature amid a string of banking failures earlier this year that rattled global markets.