A higher court in Montenegro overturned a previous lower court ruling that would have released Terraform Labs founder Do Kwon on bail. Bloomberg first reported the news.
Kwon will remain in prison until the Basic Court in Montenegro makes another decision in light of the latest ruling from the High Court, Bloomberg cited a court spokesman.
The High Court’s decision comes nearly two weeks after Montenegro’s Basic Court agreed to release detained Kwon and his former aide Chang-joon Han on bail.
At a first hearing earlier this month, Kwon pleaded not guilty to charges of forging his passport and travel documents. Quan and Han’s lawyers requested the Montenegrin court to release them on bail of €400,000 ($437,000) each and proposed house arrest under police supervision.
The two men were arrested in March at the airport in Podgorica, the capital of Montenegro, while trying to fly to Dubai.
A year ago, Terraform’s stablecoin TerraUSD (UST), an algorithmic stablecoin that worked alongside its sister coin Luna, lost its $1 peg, wiping out nearly $40 billion in market capitalization and many more. Demolished crypto firms.
Both US and South Korean officials are currently seeking Kwan’s extradition to face charges. If Quan is found guilty of falsifying his documents in Montenegro, he could serve a prison sentence before being extradited to the US or South Korea. The next hearing is scheduled for June.