Key Takeaways




To be released from custody, Kwon and Chang-Joon must each pay 400,000 euros.



To support their bail application, Kwon and Chang-Joon provided personal and financial information to the local authorities.




Terraform Labs co-founder Do Kwon has been granted bail in Montenegro following the dismissal of an appeals process by prosecutors. According to the Montenegrin court’s official press release , Kwon, along with Terraform Labs’ chief financial officer, Han Chang-Joon, will now await further legal proceedings under house arrest in the country.



The court has reinstated the original bail terms that were set during a hearing on May 12. In order to be released from custody, Kwon and Chang-Joon must each pay 400,000 euros ($436,000). Strict bail conditions have been imposed, and the duo is prohibited from leaving Chang-Joon’s legal residence in Montenegro. Local police will closely monitor their activities, and any violation of the bail terms or attempt to leave the residence will result in the forfeiture of the bail amount.



To support their bail application, Kwon and Chang-Joon provided personal and financial information to the local authorities. This included evidence of a sales contract and property registration for an apartment, parking space, and basement owned by Chang-Joon. In an effort to deter them from fleeing the country, Kwon submitted an invoice for a vehicle and bank account statements.



Kwon and Chang-Joon were initially arrested in Montenegro in March 2023 on charges of using false travel documents while attempting to leave the country. Their original passports were confiscated in South Korea in October 2022.



Do Kwon has been in the run ever since the Terra LUNA crash last year. In September 2022, South Korea asked Interpol to circulate a “red notice” for the 31-year-old Kwon across the agency’s 195 member nations to find and apprehend him. He was arrested by Montenegro police in March this year, and both South Korea and the United States have requested his extradition.



The latest bail development comes after the High Court overruled an earlier bail approval of 800,000 Euros (US$856,000) in May. The High Court then requested more detailed information regarding the finances of Kwon Do-hyeong and Han Chang-Joon, prompting the lower court to reexamine the bail request.