Montenegro’s court has agreed to release Terraform Labs co-founder Do Kwon and CFO Han Chong-Joon from house arrest.

Terraform Labs co-founder Do Kwon will be released on bail along with the company's chief financial officer Han Chong-Joon, against the wishes of prosecutors.

Montenegro's court has set the fee at 400,000 euros ($436,000) per person, according to Bloomberg.

After their release, the two will be placed under police-supervised house arrest in the country's capital, Podgorica.

After winning bail, defense lawyer Branko Andjelic told the court neither man was a flight risk and offered his girlfriend's apartment as a place for house arrest.

Prosecutors argued that the bail amount was irrelevant given Do Kwon's wealth.

Do Kwon captured

On March 23, the two were arrested at Podgorica Airport in Montenegro after suspicious travel documents were found.

As Terra LUNA collapses under the weight of the TerraUST decoupling on May 10, 2022, the capture provides a dramatic twist in the ongoing multi-billion dollar fraud.

Since his incarceration, several events have come to light, including the formation of new shell companies with the help of Serbian lawyers and charges filed against Do Kwon by the U.S. Securities and Exchange Commission.