A court in Montenegro overturned a prior ruling that granted bail to ex-crypto titan and co-founder of Terraform Labs, Do Kwon.
The high court's decision, which took place in Montenegro's capital of Podgorica, meant Kwon would continue to be held in custody, Bloomberg quoted court spokeswoman Marija Rakovic as saying.
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The ruling similarly affected Han Chong-joon, previously Kwon's chief financial officer.
Earlier in the month, both were granted permission by the Basic Court in Podgorica to be freed on bail set at 400,000 euros ($430,500).
The prosecution contested the decision, prompting the case's move to the high court.
Rakovic clarified the Basic Court would now be required to reconsider its ruling in light of the High Court's decision. She further mentioned there was no legal limit to the number of appeals that could be lodged in the ongoing determination of bail for the two South Korean nationals.
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Meanwhile, Terra blockchain's native Luna (CRYPTO: LUNA) tokens fell 6.8% following reports of the court's decision, while, Luna Classic (CRYPTO: LUNC) tokens were down about 5% at the time of publication.
Since December 2022, South Korean prosecutors maintained the claim Kwon was in clandestine residence in Serbia, a country that lacks an extradition treaty with South Korea.
A red notice for his apprehension was broadcasted via Interpol on Sep. 26 of the previous year, due to his purported involvement in the downfall of the Terra Luna and Terra USD ecosystem, valued at $40 billion, in May 2022.
In addition to South Korea, regulatory bodies in Singapore and the U.S. are actively seeking Kwon.
The detainment transpired in Montenegro, a nation positioned to the south of Serbia, which it borders.
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Photo: Shutterstock, Do Kwon, FAQX™ We mining it, via Wikimedia Commons