Terra LUNA co-founder Do Kwon successfully appealed against the prosecution’s request to keep him in custody, and is out on bail till June 5.
The Podriga Basic Court, which oversees the case, granted the bail request and accepted an initial amount of $400,000. The High Court had earlier canceled the bail on May 18 as the prosecution alleged that the bail amount was not sufficient indication of Quan’s assets.
Prosecutors had requested that bail be denied on the grounds that Kwon had not declared the full extent of his assets, and thus, the bail amount was too low.
However, the Basic Court ruled that the disclosures were sufficient after verifying the information provided on the grounds that Kwon and former Terra executive Han Chang-joon were not citizens of the country. Additionally, it concluded that the bail amount was sufficient to prevent the two from absconding.
As part of the bail, the court fixed conditions of house arrest and strict supervision. The two are not allowed to leave their apartment until the case is over. If convicted, he could face three to five years in prison in Montenegro.
The court also said that the forged documents required further verification from the Belgian authorities and directed prosecutors to do so.
The next hearing has been fixed on June 16.
Kwon’s home country of South Korea and the United States are both looking to extradite and prosecute him locally for his part in Terra Luna’s collapse and the billions in losses it has caused investors.
Both countries have filed requests for extradition with the Montenegrin authorities. However, the country has rejected the initial requests and intends to prosecute Kwon for his local criminal offenses first.
It is unclear whether Montenegro will later extradite Quan to the US or South Korea.
The Montenegrin government said it would consider extradition requests after he has been cleared of all charges or has served an appropriate sentence in the country.
Quan was arrested in late March at an airport in Podriga, Montenegro. They were detained by local authorities for using fake identity documents to board a flight from Podriga to Dubai.
Authorities found three different passports on Quan’s person, including a Belgian one.
He was subsequently arrested and subsequently prosecuted for his alleged criminal offenses within the country. Kwon has pleaded not guilty to all charges.