The disgraced cofounder of failed crypto company Terraform Labs will remain in jail after his bail was reportedly revoked in Montenegro

• Do Kwon is back in custody after his bail was revoked by a Montenegrin court, per Bloomberg.
• Earlier this month, the Terraform Labs cofounder was granted approval to be released on bail.

Disgraced crypto mogul Do Kwon's bail was revoked by a Montenegrin court, Bloomberg reported on Wednesday.

The Terraform Labs cofounder will remain in custody after the high court in Montenegro's capital city Podogorica reversed an earlier ruling that would release Kwon on bail. The court overturned the decision for Kwon's former chief financial officer, Han Chong-joon, as well.

Both were granted approval to be released on bail for $436,000 each by a lower court just two weeks ago, but prosecutors quickly appealed the decision.

"The Basic court should now make another decision, taking into account what the High Court ruled," court spokesperson Marija Rakovic told Bloomberg. "There is no legal limit to how many motions can follow between the respective judges in deciding on bail for the two South Korea nationals."

Both men are facing forgery charges after trying to take a flight with allegedly fake passports and travel documents from Podgorica to Dubai back in March — allegations that Kwon and Han have said are not true.

While Kwon awaits trial in Montenegro, he has also been indicted for criminal fraud in the US and South Korea, which are both trying to extradite him. The SEC has also filed civil charges against Kwon for allegedly violating registration and anti-fraud rules.

His legal woes come after TerraUSD and Luna, the algorithmic stablecoin and sister token created by Terraform Labs, imploded last year.

The event wiped out billions of investor dollars, triggering an industry-wide panic. Massive crypto players like hedge fund Three Arrows Capital, centralized lender Celsius, and digital asset brokerage Voyager Digital filed for bankruptcy shortly after on contagion concerns.