Do Kwon, the co-founder of Terraform Labs, is set to be released from jail after a court in Montenegro accepted a €400,000 ($436,000) bail, as reported by local news site Pobjeda.
Along with Terraform’s former chief financial officer Han Chang-joon, Kwon was arrested in Montenegro in March on charges of using a fake passport to attempt to leave the country.
They were allegedly attempting to board a private flight to Dubai with false Costa Rica travel documents. The court also agreed to release Han on a €400,000 bond, with the prosecution having three days to appeal the decision.
Kwon is facing legal difficulties in Korea and the U.S. over TerraUSD’s collapse, which occurred a year ago this week, wiping out tens of billions of dollars for investors.
In September, a South Korean court issued an arrest warrant for Kwon, citing a breach of capital markets laws.
Meanwhile, the U.S. Securities and Exchange Commission has filed civil charges against Kwon, alleging that he failed to “provide the public with full, fair and truthful disclosure as required for a host of crypto asset securities.”
TerraUSD’s crisis was the first of many to hit the crypto markets in 2022, with several other major players, including Celsius and FTX, also experiencing bankruptcies.