A high court in Montenegro overrode a lower court’s previous decision that would have released Terraform Labs founder Do Kwon on bail. Bloomberg first reported on the news.
Kwon will remain in jail until the Basic Court in Montenegro makes another decision in light of the latest decision by the high court, per Bloomberg, which cited a court spokesperson.
The high court ruling comes nearly two weeks after Montenegro’s Basic Court agreed to release detained Kwon and his former colleague Chang-joon Han on bail.
At the first hearing earlier this month, Kwon pleaded not guilty to a charge of forging his passport and travel documents. Kwon and Han’s lawyer requested the Montenegrin court to release them on bail at €400,000 ($437,000) each and proposed house arrest under police supervision.
The two men were arrested at the airport in Podgorica, the capital of Montenegro, in March while trying to fly to Dubai.
A year ago, Terraform’s stablecoin TerraUSD (UST), an algorithm stablecoin that worked with its sister coin Luna lost its $1 peg, which wiped out approximately $40 billion in market value and collapsed many crypto firms.
Both the U.S. and South Korean authorities currently seek Kwon’s extradition to face charges. If Kwon is convicted of falsifying his documents in Montenegro, he may have to serve his prison sentence before being extradited to the U.S. or South Korea. The next hearing is set for June.