A court in Montenegro has allowed the release on bail of Do Kwon, a fugitive cryptocurrency entrepreneur. Kwon, who founded Terraform, has been held in custody since March after being arrested at an airport in the country’s capital, Podgorica, with what are alleged to be fake travel documents.
Extradition Sought by Seoul and Washington
Kwon faces possible extradition to both South Korea and the US. Both countries are seeking his extradition in connection to fraud that led to the collapse of Terraform last year, which resulted in the loss of around $40bn worth of investments.
400,000 Euro Bail
Both Kwon and a companion who was arrested with him have been granted bail of 400,000 euros ($435,000) each. However, prosecutors have appealed the decision, and the defendants will remain in custody until the outcome of that appeal. If released, they will be confined to house arrest and will not be able to leave their apartment.
Kwon’s TerraUSD Stablecoin
Kwon’s TerraUSD was marketed as a “stablecoin,” which is a cryptocurrency that is typically pegged to stable assets such as the US dollar to prevent drastic fluctuations in prices. Cryptocurrencies have been the subject of increased regulatory scrutiny recently, following a number of high-profile controversies, including the collapse of the FTX exchange. The digital currency sector has also been impacted by the failure of US crypto lenders Silvergate and Signature earlier this year.
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