Lawyers representing Do Kwon, the co-founder of Terra and Chang-joon have proposed a bail of €400,000 each, and have requested their clients be confined to home arrest with the obligation to periodically report to state authorities. Prosecutors have opposed the proposed bail conditions. Montenegrin authorities are proceeding with charges against Do Kwon, and his former aide Han Chang-joon, who were arrested in March at the Podgorica airport for allegedly using forged passports.
Kwon and Chang-joon have denied the charges against them. While authorities from the US and South Korea have sought to extradite Kwon, he is expected to face legal proceedings in Montenegro first. Their criminal trial is scheduled to begin on June 16.
The collapse of Terra and the depegging of its stablecoin, the TerraUSD (UST), were some of the early events that contributed to the major crypto market crash in 2022. Reports indicate that South Korean authorities have frozen about $176 million worth of Kwon’s personal assets as his criminal case proceeds.
Kwon on the collapse of Terra
Terra is a blockchain protocol designed to support a range of decentralized applications and stablecoins. The project has gained significant attention in the crypto industry, with a market capitalization of over $12 billion at its peak. However, the collapse of the Terra ecosystem caused significant losses for investors and users.
Kwon has previously acknowledged his responsibility for the collapse of Terra, citing mismanagement and overextension as contributing factors. He has also stated that he intends to work to rebuild the project and regain the trust of users and investors.
The legal proceedings against Kwon and Chang-joon highlight the potential risks and challenges facing participants in the crypto industry. As the industry continues to grow and evolve, regulatory and legal scrutiny is likely to increase. Participants must navigate a complex and rapidly changing landscape, with potential legal and financial consequences for missteps or wrongdoing.
