Breaking news: the former CEO of the Terra (LUNA) crypto project is free again, obtaining bail in Podgorica for the umpteenth time.
A few days ago, prosecutors in Montenegro had filed an appeal with the court requesting the denial of remand measures for Do Kwon, now considered an international criminal
Let’s look at the details of the news together
Do Kwon, former CEO of crypto project Terra (LUNA), is free again
The legal adventures of Do Kwon continue, him being the founder and former CEO of the Terra project and crypto LUNA, accused of a multitude of financial crimes.
Initially, after the South Korean was arrested along with his trusty Han Chong-Joon in Podgorica for possession of false documents, he was jailed until new sentences were passed.
Immediately thereafter, the two were released on bail of 400,000 euros each, with the requirement that they be held under house arrest, which, however, was immediately challenged by an appeal filed by some prosecutors in Montenegro.
Thus, after voiding the decision to release on remand the duo responsible for the crash of the crypto Terra Luna ecosystem, here is a counter-cancellation coming from an official statement from the Podgorica Basic Court.
The latter accepted the bail terms set at the beginning of the matter on 12 May, with both defendants required not to leave their residence in Montenegro.
The two remain under observation by police authorities, awaiting careful examination of the documents (believed to be forged in the first instance) with which they were trying to board an international flight to Podgorica.
Kwon and Chang-Joon were also required to provide certain personal and financial data, among which bank statements, a sales contract for the purchase of an apartment, and an invoice for the purchase of a vehicle emerged.
Should Do Kwon‘s documents be found to be forged once and for all, he would face a five-year prison sentence in the Balkan country.
The two South Korean cybercriminals will return to court to defend themselves on 16 June. In the meantime, the prosecution may file yet another appeal within three days against the courts’ latest decision to accept house arrest bail.
South Korean authorities want to extradite the co-founder of Terraform Labs in connection with the investigation into the infamous collapse of the Terra ecosystem, which wiped out around $40 billion from the cryptocurrency market in June 2022.
Interpol has also issued a red notice for Kwon in connection with charges in South Korea, while he also faces a number of fraud charges in the United States.
Do Kwon’s troubles may not be over
Although Do Kwon, former CEO of the Terra Luna crypto project, and his business partner may easily escape the danger of imprisonment in Montenegro, there remains a greater danger from their home country and the United States.
It should be recalled that the founder of Terraform Labs is believed to be primarily responsible for the collapse of the Terra ecosystem, which took about $40 billion out of the crypto market last year.
Interpol also had issued a “red notice” against him making him for all intents and purposes an internationally wanted criminal.
To date there are eight charges against Do Kwon between the United States, South Korea, and Montenegro, including those of fraud, computer fraud, and falsification of documents.
Hence the issue of legal disputes in Podgorica may be insignificant compared to what really awaits the South Korean outside the country of Montenegro.
The whole world has its eyes on him and a host of investors are just waiting to enjoy seeing him incarcerated for life in a Seoul or New York prison.
However, the question still remains as to why all this hounding of “poor” Do Kwon and the total absence, on the opposite side, of investigative activity regarding the money taken away from the Terra Luna crash.
After all, markets are a zero-sum game: if someone lost $40 billion, someone else undoubtedly gained it.
Hence, if these assets are not in Do Kwon’s pocket, where did they go? And why are no authorities investigating this?
Sadly though, few care.
Price analysis of the crypto Terra (LUNA).
The crypto Terra (LUNA) now seems to be on the verge of total decadence.
The new ecosystem born out of the fork of the old LUNA token (now called LUNC) seems to be nowhere near able to compete with the big boys in the industry such as Ethereum, Arbitrum, Polygon, Solana and Optimism.
The latter enjoy a significantly higher TVL and a significantly more thriving user and developer base.
In particular, the chain has a capital turnover of only $10 million, with almost all operations conducted on the Astroport DEX and a lack of alternative dApps.
The Luna crypto is obviously suffering from this situation and cannot get out of the abyss zone even on the purely speculative front.
Apart from a few brief recovery situations, culminating in a subsequent depreciation of the asset, Luna is in the midst of a long-term bearish trend.
Just yesterday there was an attempt at manipulation by some whale that ended in the last few hours with a dump that wiped out earlier gains.
The RSI does not seem to be helping either, and on occasions when the indicator marked oversold levels (8 May) we have not seen price reversals, only a prolongation of laterality/distribution.
Luna at this time trades at $0.86 per piece, with a market capitalization of $245 million and volume in the last 24 hours exceeding $250 million.
Given the still high market cap and the absence of a true DeFi world around Luna, it is very likely that the asset will continue to depreciate, even if the general bull market returns.