Kwon’s attorneys had argued that he should be released on bail because he is not a flight risk and poses no danger to the public. The court agreed to release Kwon on bail, but he must remain under house arrest and surrender his passport.
Kwon is facing up to five years in prison if convicted of the charges against him. He is scheduled to appear in court again on June 15.
The arrest of Do Kwon is the latest development in the ongoing TerraUSD scandal. TerraUSD was a stablecoin that was pegged to the US dollar, but it lost its peg in May 2022, causing the value of the Terra blockchain to plummet. The collapse of TerraUSD wiped out billions of dollars in value and led to widespread criticism of Kwon and Terraform Labs.
Kwon has apologized for the collapse of TerraUSD and has said that he is committed to rebuilding the Terra ecosystem. However, it remains to be seen whether Kwon will be able to regain the trust of the crypto community.