Terraform Labs co-founder Do Kwon is set to stay in custody as he confronts allegations of falsifying official documents in Montenegro. The Court statement from Thursday confirmed that a bail request, initially granted, was subsequently rescinded.
Despite the Basic Court in Podgorica, the capital of the country, initially approving a bail proposal presented by Kwon’s legal team, Bloomberg has revealed that the decision was later overturned by a higher court on Wednesday.
According to the previous statement, the court obtained an agreement payment of 400,000 Euros (nearly 428,000 US Dollars) on May 17 to affirm in order to uphold the outcome of the Basic Court of Podgorica.
The High Court ruled against granting bail, stating that the Basic Court has failed to adequately evaluate the worth of the defendant’s property. According to the High Court, the lower court could not rely solely on the defendant’s statement but required solid evidence, which was lacking in this particular case.
In light of the High Court’s decision, the Basic Court has opted to prolong Kwon’s detention. Kwon, alongside Han Chang-Joon, a former executive at Terra, is scheduled to appear in court for their upcoming hearing on June 16th.
As the court stated, “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.”