Cryptocurrency magnate Do Kwon, facing charges in the U.S. for an extensive fraud case, has been awarded bail by a Montenegrin court. The court set the bail at 400,000 euros (equivalent to $440,320), as Kwon awaits his local trial. Kwon, a South Korean citizen and ex-CEO of Terraform Labs, the enterprise responsible for the now-defunct stablecoin TerraUSD, was apprehended in Montenegro in March.
The U.S. District Court in Manhattan had earlier unveiled an eight-charge indictment against Kwon, accusing him of securities fraud, wire fraud, commodities fraud, and conspiracy. These charges arose from his activities in the cryptocurrency sector, which caused a significant upheaval in the industry in May 2022.
Han Chang-joon, the former CFO of Terraform Labs, who was arrested along with Kwon, will also be granted release on the same bail amount. Both accused were subjected to a 30-day pre-trial detention following charges of falsifying official documents.
As per the court’s verdict, Kwon and Chang-joon will be under house arrest and will be monitored by the police. The court rationalized its decision by stating that the hefty bail sum of 400,000 euros for each would serve as a strong deterrent to any attempt to escape.
During a court session, both defendants pleaded not guilty to the charges pressed by the Montenegrin prosecutor. They assured the court of their substantial assets and informed that their spouses would be responsible for posting the bail, as per the court’s documentation.
The arrest of Kwon and Chang-joon was made at the Podgorica airport in Montenegro while they were trying to catch a flight to Dubai. Montenegrin police later uncovered tampered Costa Rican passports, an additional pair of Belgian passports, along with laptop computers and other devices in their possession.
South Korean and U.S. authorities are seeking the extradition of Kwon and Chang-joon and are also demanding the handover of the confiscated computers. This case has garnered international attention as authorities seek to hold the alleged fraudsters accountable.
As Kwon’s trial is pending, the cryptocurrency sector is keenly observing the legal proceedings, given the potential implications for future regulations and supervision within the digital asset domain. The case underscores law enforcement’s ongoing efforts to combat fraudulent activities in the cryptocurrency market and safeguard investors from possible frauds.
The trial is anticipated to expose more details about the alleged fraud and its impact on the cryptocurrency landscape. Investors, regulators, and industry players will be closely tracking the proceedings, hoping for a just and fair resolution that reinforces the importance of transparency, accountability, and investor protection in the ever-evolving crypto world.
Please note: The information shared in this article is based on the data available at the time of writing and may change as the case progresses.
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