Kwon’s detention extended after court revokes bail in Montenegro

The co-founder of Terraform Labs, Do Kwon, will remain in custody while facing charges of falsifying official documents in Montenegro. This is due to a request for bail being approved and later revoked, according to a court statement released on Thursday.

Initially, the Basic Court in the capital city of Podgorica had accepted a bail proposal from Kwon’s lawyers. However, Bloomberg reported that the decision was later annulled by a high court on Wednesday.

The Basic Court of Podgorica confirmed the high court’s decision in a statement to CoinDesk, and also mentioned that it had received 400,000 euros ($428,000) as agreed payment from Kwon on May 17.

The High Court rejected the bail approval after finding that the Basic Court did not adequately assess the value of the defendant’s property. They stated that the lower court could not accept the value of the defendant’s property “based on their statements, but only concrete evidence,” which was not presented in the case files.

As a result of the High Court ruling, the Basic Court has decided to extend Kwon’s detention. “In the renewed proceedings, the court will proceed according to the High Court’s grounds for termination and after that make a decision based on the proposal of the defense counsel for the defendants to accept bail,” the court said.

Kwon, along with former Terra executive Han Chang-joon, will appear in court for their next hearing on June 16. The U.S. and South Korea have requested Kwon’s extradition from Montenegrin authorities to face criminal charges related to the collapse of Terraform Labs in May of last year.

Read more: Montenegro High Court Says No Bail for Terra’s Do Kwon in Fake Passport Case: Bloomberg