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Terraform Labs Founder Do Kwon Remains in Jail Despite Bail Request
A high court in Montenegro has overridden a previous decision by a lower court to release Terraform Labs founder Do Kwon on bail. Kwon will remain in jail until the Basic Court in Montenegro makes another decision in light of the latest ruling, which came nearly two weeks after Kwon and his former colleague Chang-joon Han were initially granted bail.
Background
In March, Kwon and Han were arrested at the airport in Podgorica, Montenegro while attempting to fly to Dubai. Kwon has been charged with forging his passport and travel documents, to which he pleaded not guilty. Both the U.S. and South Korean authorities are seeking Kwon’s extradition to face charges in their respective countries.
The Collapse of Terraform’s Stablecoin
A year ago, Terraform’s stablecoin TerraUSD (UST) lost its $1 peg, wiping out approximately $40 billion in market value and collapsing numerous crypto firms. The algorithm stablecoin worked with its sister coin Luna and was thought to be a reliable investment option. This scandal has rocked the crypto industry, and Kwon’s arrest has only added to the turmoil.
Judicial Proceedings and Next Steps
Kwon and Han’s lawyer requested the Montenegrin court release them on bail at €400,000 ($437,000) each and proposed house arrest under police supervision. After initially approving the request, the court has now overridden the decision, and Kwon will remain in jail for the time being. Kwon’s next hearing is set for June.
Conclusion
The collapse of Terraform’s stablecoin and the subsequent arrest of its founder have left the once-thriving crypto industry in turmoil. Kwon’s impending extradition hearings in both the U.S. and South Korea, along with his latest denial of bail, have only added to the scandal. Only time will tell how this situation will ultimately unfold.
FAQs
What is Terraform Labs?
Terraform Labs is a blockchain-based financial platform that offers algorithmic assets and financial infrastructure for the next generation of decentralized finance.
What is TerraUSD?
TerraUSD (UST) is an algorithm stablecoin created by Terraform Labs that lost its $1 peg, wiping out approximately $40 billion in market value and collapsing numerous crypto firms last year.
What is Do Kwon charged with?
Do Kwon has been charged with forgery of passports and travel documents.
What are the next steps for Do Kwon?
Kwon’s next hearing is set for June, and both the U.S. and South Korean authorities are seeking his extradition to face charges in their respective countries.
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