Montenegro Court Reissues Kwon Do-hyung's Bail... "Bail Amount of 600 Million Won Is Not Small"

Law Reviews Evidence of Kwon Do-hyung's Financial Status... Bail Reallowed
Prosecution Can Appeal Within Three Days... Detention Until Higher Court's Decision

The Montenegrin court has been confirmed to have reinstated the bail request of Kwon Do-hyung, CEO of Terraform Labs (32), a key figure in the cryptocurrency 'Terra·Luna' crash incident.

The Podgorica District Court of Montenegro announced on its official website on the 2nd (local time) that it had granted bail to CEO Kwon and his associate Han, setting bail amounts of 400,000 euros (approximately 580 million KRW) each, along with conditions such as a ban on going out and police surveillance. These bail conditions are the same as those presented when the district court first approved the bail requests of CEO Kwon and Mr. Han on the 12th of last month.

Kwon Do-hyung heading to Podgorica District Court
Photo by Yonhap News

The Montenegrin prosecution appealed to a higher court to overturn this decision after the Podgorica District Court approved the bail for CEO Kwon and others. The prosecution argued that the bail amount of 400,000 euros each was far too low compared to their financial resources and that there was a risk of flight since they are subject to Interpol red notices.

The higher court, the Podgorica High Court, accepted the prosecution's appeal on the 18th of last month and canceled the bail decision. However, after reconsideration by the Podgorica District Court, bail was allowed again. At that time, the Podgorica High Court cited the reason for canceling the bail decision as the trial court not sufficiently verifying the financial status of CEO Kwon and others. In the first trial on the 11th of last month, when asked by the judge about his financial power, CEO Kwon stated that the apartment in Korea co-owned with his wife was worth about 3 million dollars (approximately 4 billion KRW), but he could not specify other assets due to their volatility. Despite the judge's warning that "if the exact size of the assets is not disclosed, it may result in disadvantages in future trials," CEO Kwon consistently gave ambiguous answers regarding the size of his assets.

According to local Montenegrin media, Branko Anjelic, the local legal representative of CEO Kwon and others, recently submitted evidence regarding the defendants' financial status to the Podgorica District Court. The court is believed to have reinstated bail based on this, judging that a significant portion of CEO Kwon and others' asset size was proven.

The court explained, "Considering the defendants' financial situation provided by the lawyers, the seriousness of the defendants' criminal acts, and the personal and family circumstances of the defendants, this decision was made," adding, "Contrary to the prosecution's opinion, the court judged that 400,000 euros is not a small portion of the defendants' assets." It further stated, "Additional measures are necessary to verify the authenticity of the Belgian identity cards possessed by the defendants," and "Considering the uncertainty of when this trial procedure will end."

CEO Kwon and others were arrested on March 23 at Podgorica International Airport while attempting to board a flight to Dubai, United Arab Emirates (UAE), with forged Costa Rican passports. Forged Belgian identity cards were also found in their luggage. The prosecution has indicted CEO Kwon and others on charges of forgery of official documents, and the trial is currently underway. According to Montenegrin local law, if convicted of forgery of official documents, a prison sentence ranging from 3 months to a maximum of 5 years may be imposed.

The prosecution can appeal the Podgorica District Court's decision to reinstate bail within three days. Detention of CEO Kwon and others will be maintained until a decision is made by the higher court. It is known that CEO Kwon and others have already paid bail of 400,000 euros each to the court. CEO Kwon's next trial is scheduled for the 16th.