Both defendants denied any wrongdoing and presented their defense during a court hearing in Podgorica, Montenegro's capital, on Thursday.

According to a notice from the hearing, the defense lawyers proposed, "Instead of detention, bail and supervision measures be imposed, prohibiting them from leaving the apartment and periodically reporting to a certain state authority."

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The lawyers recommended a bail amount of 400,000 euros ($437,000) for each of the Korean nationals, who are still in custody.

The court is expected to make a decision on the proposal, and the next hearing is scheduled for June 16.

Once the Montenegrin legal process is complete, Kwon may face extradition to either the United States or South Korea. In both countries, he faces criminal charges related to the collapse of Terraform Labs in May 2022, which resulted in a $40 billion loss in market value.

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