Prosecutors Revoke House Arrest for Terraform Labs Co-Founder and Former CFO
It seems that Terraform Labs executives may have to forget about the possibility of house arrest.
In a startling development, Terraform Labs co-founder, Do Kwon, and the company’s ex-CFO, Han Chong-joon, find their bail privileges under review following an appeal by Montenegro prosecutors.
According to the news portal Bloomberg’s May 24th report, the court has decided to revoke house arrest for Terraform Labs executives.
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However, the situation remains fluid, as local regulations reveal that the decision from Montenegro Basic Court can be challenged multiple times.
On May 12th, the Basic Court in Podgorica, the capital of Montenegro, ruled in favor of the proposal, setting the bail at 400,000 euros ($435,000) each, as suggested by the defendant’s legal team. However, this decision was appealed by prosecutors the following week, bringing the conditions of their bail under scrutiny once again.
The case complicates even further as authorities in South Korea and the United States seek Kwon’s extradition.
The legal maze facing Kwon extends beyond borders, as he faces charges in the US and Singapore. Charges leveled against Kwon by US prosecutors range from commodities fraud, securities fraud to wire fraud and conspiracy to defraud and engage in market manipulation.
Furthermore, the US Securities and Exchange Commission (SEC) has initiated a lawsuit against him. An additional class-action suit awaits Kwon in California.
Considering the gravity of the charges, Kwon could be looking at up to 40 years of imprisonment if convicted in South Korea, while a five-year sentence potentially awaits him in Montenegro. His trial in Montenegro is scheduled to commence on June 16th.
The legal troubles facing Terraform Labs’ co-founder and former CFO are far from over, with ongoing legal proceedings in Montenegro and extradition requests from multiple countries. As the saga unfolds, the global crypto community watches closely, eager for the June 16th trial.