Do Kwon, creator of Terraform Labs, is given a second chance at bail after an appeals court overturned the lower court’s decision and reevaluated his resources.
Do Kwon Released on Bail in Montenegro
Bail was granted to Do Kwon, co-founder of Terraform Labs, on June 2 after a Montenegrin court rejected an appeal by prosecutors.
Together with another ex-Terra executive named Han Chang-joon, Kwon was arrested in Montenegro back in March on suspicion of trying to use forged travel documents. After the failure of his multibillion-dollar cryptocurrency business in May of last year, officials in South Korea began searching for Kwon. Upon his trial in Montenegro, South Korea and the United States both demanded Kwon’s deportation to stand trial on criminal charges in their respective countries.
Media sites Vijesti and Hankook Ilbo report that Kwon and Terra’s former CFO Han Chang-joon had their second bail application approved by a Podgorica District Court branch.
Kwon and Chang-Joon gave local authorities access to their personal and financial information, including a copy of the sales contract and the property registration for Chang-Joon’s apartment, parking space, and basement.
A hearing on May 12 was readopted, and the court ordered bail to be set at 400,000 euros ($436,000) for each defendant. Under the terms of their bond, Kwon and Chang-Joon are prohibited from leaving Montenegro, where Chang-Joon is legally residing.
The next court hearing is scheduled for June 16, and the prosecution has a three-day window to appeal the bail decision.
Almost 30% Surge in Terra Classic (LUNC)
The recent surge in Terra Classic (LUNC) prices, starting from June 4, appears to be linked to the court’s verdict, as the community eagerly anticipates a significant blockchain upgrade. Overnight, LUNC price experienced a notable rally, resulting in double-digit gains.
The positive news of Do Kwon’s release on bail has also contributed to the excitement within the LUNC holder community. While it remains uncertain whether Kwon’s freedom directly influenced the price surge, it is possible that both factors played a role in driving the market.
However, it is essential to consider that the price movement could be purely technical and unrelated to Do Kwon’s situation. Regardless, LUNC holders have welcomed the news, and the token’s price has climbed by 14.6% to reach $0.0001135 on June 5. Traders have seen substantial gains over the past week, with LUNC price delivering a nearly 29% increase, as per data from CoinMarketCap.
Final Thoughts
The future course of Do Kwon’s legal proceedings will be determined in part by a hearing scheduled for June 16 and by any appeal the prosecution may file about the bail decision. Meanwhile, the Terra Classic community will be keeping a careful eye on how the blockchain upgrade develops and whether or not it affects the value of the coin.