Prosecutors are taking decisive action to keep Do Kwon in custody

The founder of the Terra project is trying to run away from responsibility.

Everything indicates that Do Kwon, who is behind the cryptocurrency project, the collapse of which caused a number of extremely negative consequences for the digital currency sector, will follow in the footsteps of his industry colleague, Sam Bankman-Fried. Recently, a South Korean businessman applied to the court to be released from prison in Montenegro on bail. Although the Podgorica court decided to accept such a solution, the local prosecutors appealed against this decision.

Prosecutors are trying to keep Do Kwon in custody

Recently, the disgraced South Korean entrepreneur behind the Terra project, along with one of his associates, filed a petition with a court in Podgorica seeking release from prison on $440,000 bail. It is worth noting that the judge in charge of Do Kwona's case agreed to this solution.

Do Kwon, along with Han Chang-Joon, were detained by the Montenegrin police at the airport in Montenegro in March this year. The legal situation of the South Korean businessmen is very difficult as both men were traveling with fake IDs. They are likely to face additional criminal charges for falsifying documents in the country where they are currently detained. According to Montenegrin law, they are punishable by up to 3 years in prison.

Prosecutors in Montenegro have decided to appeal against the first-instance decision by a Podgorica judge to release Do Kwon and his accomplice from custody on bail. After paying the money, the men would be immediately released from custody, but the terms of the release of both businessmen were to require them to remain in a court-appointed place.

A Montenegrin judge will decide whether to approve or reject the appeal

South Korean entrepreneurs will remain in custody until the court issues a ruling on the approval or rejection of the above-mentioned appeal drawn up by prosecutors from Montenegro. Some analysts related to the cryptocurrency sector claim that the release of Do Kwon from custody will cause the entrepreneur to start hiding from justice again. Part of the digital currency community considers him the main culprit in the spectacular bankruptcy of the project related to the LUNA cryptocurrency (now known as LUNC), as well as the stablecoin UST.

In conclusion, it is worth being aware that both South Korea and the United States have requested the extradition of the founder of Terraform Labs. If Do Kwon were found guilty of the frauds he was accused of in his home country, he could face a hefty prison sentence of up to 40 years. Severe criminal liability awaits him also in the USA.