Terraform Labs Co-Founder Do Kwon’s Bail Revoked
Do Kwon, the former head of Terraform Labs and the creator of the failed TerraUSD stablecoin, is back in custody in Montenegro after a higher court revoked his bail of 800,000 euros. He was arrested in March along with Han Chang-joon, the ex-finance officer of Terraform Labs, on charges of forging official documents. They were trying to flee to Dubai from Podgorica airport when they were detained by the police.
The U.S. District Court in Manhattan has indicted Do Kwon for securities fraud, wire fraud, commodities fraud and conspiracy, accusing him of orchestrating a multibillion-dollar scam that collapsed in May 2022 and shook the crypto markets. The U.S. and South Korean authorities have requested his extradition and the seizure of his computers and other devices.
Do Kwon and Han Chang-joon have denied any wrongdoing and claimed they have assets worth millions. They offered their wives as guarantors for their bail. However, the prosecution argued that they had no incentive to stay in Montenegro and face extradition. The police also found fake Costa Rican and Belgian passports in their luggage.