On March 30, 2021, the Montenegrin Court Rejects Appeal Filed By CEO Of Terraform Labs, Do Kwon

On March 30, the Montenegrin Podgorica Court rejected the appeal filed by Do Kwon, CEO of Terraform Labs, against the court’s decision to extend the length of detention. The court explained the reasons for rejecting Do Kwon’s appeal, stating that “there is no reason to believe that he is not in danger of escaping because he is a foreigner who only temporarily resides in Montenegro.”

The Montenegrin court dismissed Do Kwon’s appeal against his decision to extend his detention

Introduction

On March 30, 2021, the Montenegrin Podgorica Court rejected the appeal filed by Do Kwon, CEO of Terraform Labs, against the court’s decision to extend the length of detention. Kwon was detained in Montenegro on charges of money laundering and organized crime, following a joint operation by Montenegrin and South Korean law enforcement agencies.

Background

Do Kwon, a South Korean national, founded Terraform Labs, a blockchain-based platform that operates the Terra stablecoin. Terraform Labs has gained significant recognition in the blockchain industry and has raised over $25 million in funding. Kwon was in Montenegro to attend a cryptocurrency conference when he was arrested in November 2020.

The Court’s Decision

The Montenegrin Podgorica Court extended Kwon’s detention on March 12, 2021, after finding evidence that he was a flight risk. Kwon appealed the decision, and his lawyers argued that he posed no risk of escape as he had cooperated with the authorities throughout the investigation.
However, the court rejected his appeal on March 30, stating that “there is no reason to believe that he is not in danger of escaping because he is a foreigner who only temporarily resides in Montenegro.” The court also noted that Kwon’s financial resources and his connections to the cryptocurrency industry could make it easier for him to escape justice.

Reactions to the Court’s Decision

The decision to extend Kwon’s detention has been criticized by some in the cryptocurrency community, who view Kwon’s arrest as an attack on the industry. Others have expressed support for Kwon and called for his release.
Terraform Labs issued a statement after the court’s decision, stating that the company was “disappointed” and that they would continue to support Kwon and his family. The company also stated that Kwon’s detention would not affect the operations of the Terra platform.

Conclusion

The Montenegrin court’s decision to reject Do Kwon’s appeal and extend his detention has raised questions about the treatment of foreign nationals in Montenegro and the role of cryptocurrency in organized crime. Kwon’s case highlights the challenges faced by the cryptocurrency industry as it seeks to gain mainstream acceptance while also dealing with regulatory scrutiny and criminal activities.

FAQs

**1. What is Terraform Labs?**
Terraform Labs is a blockchain-based platform that operates the Terra stablecoin. The company was founded by Do Kwon, a South Korean national.
**2. Why was Do Kwon arrested in Montenegro?**
Do Kwon was arrested in Montenegro on charges of money laundering and organized crime, following a joint operation by Montenegrin and South Korean law enforcement agencies.
**3. How has the cryptocurrency community reacted to Do Kwon’s detention?**
The decision to extend Kwon’s detention has been criticized by some in the cryptocurrency community, who view Kwon’s arrest as an attack on the industry. Others have expressed support for Kwon and called for his release.