Terraform Labs Executives Remain Under House Arrest

According to an official court release, the State Prosecutor’s office’s appeal against an earlier parole agreement was rejected, allowing Do Kwon and Terraform Labs’ chief financial officer Han Chang-Joon to remain under house arrest in the country pending further legal proceedings.

The court reaffirmed the bail conditions from the May 12 hearing, requiring each defendant to pay $436,000 (400,000 euros) to be released from detention.

Do Kwon and Chang-Joon are under strict bail conditions and cannot exit Chang-Joon’s official residence in Montenegro.

The pair will be carefully monitored by local law enforcement. Bail will be forfeited if either member of the duo from Terraform Labs leaves the residence or violates supervision conditions.

Kwon and Chang-Joon provided local authorities with personal and financial information, including evidence of a sales contract and property registration for Chang-Joon’s apartment, parking space, and basement.

Kwon reportedly submitted a bill of sale for a vehicle and bank account statements, with bond conditions designed to discourage the defendants from attempting to flee the country.

Kwon and Chang-Joon were arrested in Montenegro in March 2023 for allegedly attempting to flee the country with forged travel documents. In October 2022, their authentic passports were confiscated in South Korea.

The Podgorica High Court stated that verifying the authenticity of the defendants’ Belgian passports and identity cards would take additional time but that the agreed-upon bail amount “is a sufficient guarantee for securing the defendants’ presence.”

Do Kwon, co-founder of Terraform Labs, was granted bail in Montenegro on June 2 after an appeal by prosecutors was overruled by the Podgorica district court.

Do Kwon remains a person of interest in multiple jurisdictions.

Authorities in South Korea want to deport the co-founder of Terraform Labs to investigate the infamous collapse of the Terra-LUNA algorithmic stablecoin in June 2021, which wiped out an estimated $40 billion from the cryptocurrency market.

Interpol has also issued a red notice for Kwon about the charges he faces in South Korea, and he is also facing numerous fraud-related offenses in the United States.