UpdatesMay 13, 2023

Do Kwon released from custody! What will happen next with the creator of Terra?

A South Korean entrepreneur associated with the Luna project is back on the loose.

Do Kwon's streak of escape from justice ended at the end of March this year. This happened because a popular cryptocurrency entrepreneur was arrested at the airport in Montenegrin Podgorica. The question the cryptocurrency community is now asking is whether the co-founder of the failed company Terraform Labs will be brought to court or will he manage to escape law enforcement again? For now, all we know is that Do Kwon was granted permission to be released from custody in Montenegro, which was changed to house arrest.

Do Kwon is out on bail

For more than half a year, one of the creators of the Terra ecosystem - Do Kwon - remained completely elusive to law enforcement agencies looking for him after the South Korean authorities issued a warrant for his arrest in September 2022 in connection with serious accusations of financial fraud that he allegedly committed.

About a year ago, his company Terraform Labs, which was behind the UST stablecoin and the LUNA cryptocurrency, spectacularly collapsed as a result of the former asset's crash, which led international investors to losses of USD 40 billion. Just before this extremely scandalous event, Kwon left the capital of South Korea, and the accounts of the law firm representing Terraform Labs were credited with about $ 7 million.

The fugitive businessman has been secretly moving between different countries for several months (he has been known to have been to Singapore, Dubai and Serbia) snubbing the law enforcement authorities and informing via his Twitter account that he is not on the move at all and has no intention of hiding from Police. In the meantime, Interpol (at the request of South Korea) issued a special notice, the so-called "Red Notice" to apprehend a businessman in hiding.

Do Kwon was finally arrested at the end of March this year at the airport in Montenegro, from which he tried to get to Dubai using a fake passport. After his arrest, the Montenegrin prosecutor's office charged him, among other things, with using forged documents.

Now, however, it has been reported to the public that Kwon and his accomplice will be released on bail and await trial, which is scheduled for June 16. Both businessmen will await the said trial under house arrest in one of the apartments in a Montenegrin village. What's more, both have to pay 400,000 euros each and are banned from leaving the property assigned to them, which will be monitored by the Montenegrin police.

It is worth adding at this point that the prosecutor's office initially did not want to agree to release them from prison custody, fearing that Kwon would not miss such a great opportunity to vanish into thin air again. The Korean, however, somehow managed to convince the trial judge that from now on he would fully cooperate with the authorities and respond to any summons. But are these sincere assurances from the former CEO of Terraform Labs? We'll probably find out soon.

What fate awaits Do Kwon?

Concluding the latest news related to the person of Do Kwon, it is worth mentioning that the allegation regarding the use of false documents in Montenegro is nothing big compared to the accusations against the Korean by the prosecutor's office in the United States and Seoul. For his numerous financial frauds, Kwon could face up to 40 years in prison in South Korea.