According to a court statement released on Thursday, Do Kwon, the co-founder of Terraform Labs, will continue to be held in custody as he confronts allegations of falsifying official documents in Montenegro. Initially, a bail request was granted but subsequently revoked.

After the Basic Court in Podgorica, the capital of Montenegro, initially approved a bail proposal by Kwon’s legal team, a higher court nullified the decision on Wednesday, as reported by Bloomberg.

The High Court overturned the bail approval as it determined that the Basic Court had not adequately evaluated the worth of the defendant’s property. The higher court stated that, the lower court could not accept the value of the defendant’s property solely based on their claims but required concrete evidence. However, such evidence was not present in the case files at that moment.

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As a result of the ruling from the High Court, the Basic Court has opted to prolong Kwon’s detention.

“In the renewed proceedings, the court will proceed according to the High Court’s grounds for termination and after that make a decision based on the proposal of the defense counsel for the defendants to accept bail,” the court noted.

Kwon and former Terra executive Han Chang-Joon are scheduled to appear in court for their next hearing on June 16. Both the United States and South Korea have sought the extradition of Kwon from Montenegrin authorities to face criminal charges related to the downfall of Terraform Labs in May of the previous year.