Terraform Labs co-founder and alleged multi-billion fraudster Do Kwon will be released from custody and placed under house arrest after the court in Podgorica, Montenegro, agreed to $430,000 bail, local news outlet Pobjeda reported on Friday.
The same bail conditions will apply to Han Chang-joon, Terraform Labs' former finance officer, who was detained with Do Kwon on March 23 after the pair attempted to book a flight to Dubai from Podgorica using falsified travel documents from Belgium and Costa Rica. Both have been since placed in a 30-day pre-trial detention.
In Montenegro, document forgery is a serious offense that is punishable by up to five years in prison. The prosecutor initially objected to the release on bail of the two defendants, pointing out that they have zero interest in staying in Montenegro and sufficient financial means to be considered high flight risk.
“The defendants explained their financial circumstances to the court, indicating that they have property worth several million, while the said amount would be paid by their wives. They also promised that if bail is set, they will not hide until the end of the criminal proceedings, that they will regularly respond to court summons and that they will be available at the address provided by their defense attorney,” reads the Google-translated statement from the court.
Read also: Seoul prosecutor calls for extradition of Do Kwon to South Korea
The decision follows Kwon’s appearance in a Montenegro court on Thursday, where he pled not guilty to charges of using forged travel documents. If convicted, he would first have to serve jail time in Montenegro before being extradited. Besides South Korea, where Kwon has been charged with breaching capital markets laws, he is also wanted in the US, where he is accused of securities fraud, and in Singapore, where Terraform Labs was headquartered.