Do Kwon, founder of Terraform Labs, which operated Terra stablecoin and Luna cryptocurrency, has pleaded not guilty to traveling to Montenegro on a forged passport.

In the Basic Court of Montenegro’s capital Podgorica, Kwon and Terraform’s chief financial officer Han Chang-Joon denied document forgery charges.

Shortly after, another local report informed that the Court approved the bail worth €400,000 that was proposed by Kwon. As such, he is set to be released ahead of the trial.

The prosecutors objected to the decision, arguing that Kwon and Chang-Joon had no interest in remaining in Montenegro until the court date.

Kwon Proposes €400K for Bail

Kwon and Han were arrested at the Podgorica airport on March 23, and the prosecutors filed the charges against them on April 2. On the May 11 hearing, their lawyers sought the defendants’ bail and proposed a combined amount of €400,000. They also asked the court to define the measures for the defendants to “leave the apartment” during the prohibition and its supervision.

“A trial was held before the Basic Court in Podgorica in the case against the defendants C.J.H. and K.D.H., who are accused of having committed the criminal offense of document forgery. At the main hearing, the defendants denied the commission of the criminal offense they were charged with and presented their defense,” Podgorica’s Basic Court, in a statement, said.

The defense lawyers further asked the court to allow Kwon and Han to “report to the state authority periodically.” However, the state prosecutors opposed these proposals. The court has not decided on the matter and set June 16 as the next hearing date.

No Immediate Extradition

After his arrest, the US and South Korea officially asked Montenegro for Kwon’s