A high court in Montenegro overruled an earlier decision by a lower court that would have released Terraform Labs founder Do Kwon on bail. Bloomberg first reported the news.
Kwon will remain in jail until the court in Montenegro makes a new decision in light of the high court’s latest decision, according to Bloomberg, which quoted a spokesman for the court.
The Supreme Court ruling comes nearly two weeks after Montenegro’s court agreed to release jailed Kwon and his former colleague Chang-joon Han on bail.
At the first hearing earlier this month, Kwon pleaded not guilty to forging his passport and travel documents. Kwon and Han’s lawyer requested the Montenegrin court to release them on bail for €400,000 ($437,000) each and suggested house arrest under police supervision.
The two men were arrested in March at Podgorica airport, the capital of Montenegro, while trying to fly to Dubai.
A year ago, Terraform’s stablecoin TerraUSD (UST), an algorithm stablecoin partnered with its sister coin Luna, lost its $1 peg, wiping out about $40 billion in market value and causing many crypto companies to collapse.
Both US and South Korean authorities are currently seeking 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 US or South Korea. The next hearing is scheduled for June.