Former Terraform Labs CEO Do Kwon is finally out of Spuž jail in Montenegro, albeit under the strict condition not to leave the country.
The court extended the arrest warrant and placed Do Kwon’s passport in confiscation, ensuring he remains within Montenegrin circulation. The release follows months of legal activity opposing Do Kwon, who was the subject of intense international interest following Terraform Labs’ cryptocurrency downfall.
The release of the former CEO comes amid a complicated legal battle as competing jurisdictions race to try him for his role in the crypto catastrophe.
Kwon’s legal troubles began when TerraUSD, an algorithmic stablecoin tied to its sister coin Luna, lost its peg to the dollar, wiping out around $40 billion in market value and causing widespread losses across the crypto industry.
The fallout from this event has led to legal actions from both U.S. and South Korean authorities, who are currently seeking Kwon’s extradition to face charges related to the collapse.
Released, But Not Free
Considering the release as mentioned earlier, Kwon’s freedom is not so free, in reality, since the court conditions de facto retain him in the country.
The Montenegrin court initially freed Kwon on bail, but the high court overruled the decision, leaving the businessperson in jail until the Basic Court decided again as to how his release should be handled in light of the former’s decision.
Since the story broke, many crypto community representatives have started discussing the potential ills of engaging in the rapidly growing industry. Indeed, Kwon’s story demonstrates that the risks may be more numerous than the benefits .
Consequently, his case has turned into a warning and a reason for caution among crypto entrepreneurs.
As the legal proceedings continue, the LUNC and LUNA communities watch closely, with the majority optimistic that a favorable outcome may positively impact their investments.
For now, Kwon remains in Montenegro, awaiting the next steps in a legal journey that has far-reaching implications for the industry at large.
