Terraform Labs co-founder Do Kwon has had his request for bail revoked despite paying a bail sum of €400,000 euros ($429,000) last week. Instead, Do Kwon will remain in custody as he faces charges of fabricating official documents in Montenegro.
A court statement revealed how Do Kwon and former Terra executive Han Chang-Joon’s request for bail was initially approved by a first-instance court and the pair each paid the stipulated amount on May 17.
However, the agreement was subsequently appealed by the prosecutor’s office. A high court upheld the appeal and voided the bail, leaving Do Kwon and Joon stuck in a cell.
According to the public relations office for the Podgorica Basic Court, Do Kwon’s bail was rejected because “the first-instance court could not determine the value of their property based on their statements, but only concrete evidence that is not in the case files.”
Do Kwon and Joon’s next court date is scheduled for June 16.
Do Kwon is bankruptcy Ground Zero
News of Do Kwon’s role in the collapse of stablecoin Terra and its native crypto LUNA is still being unearthed. Last month, it was reported that Do Kwon had sent 9 billion won ($3 million) to a law firm just before Terra and LUNA crashed. This, prosecutors from South Korea say, suggests he knew of the impending crash and pre-emptively moved to tackle any potential legal trouble.
Meanwhile, this month, Celsius founder Alex Mashinsky hinted that Do Kwon, Sam-Bankman-Fried, and their respective projects are responsible for the collapse of the Celsius Network.
He claims that forces beyond his control caused the collapse of Celsius and that he couldn’t have known that both FTX and Terra (projects Mashinsky had invested heavily into) were fraudulent endeavors.