Court Rules Developer Kept Kwon's Deposit—No Redemption in Crypto's Fall

Do Kwon, co-founder of the now-defunct blockchain firm Terraform Labs, has been denied his claim to recover a S$19.4 million (approximately $14.2 million) deposit for an uncompleted purchase of a luxury penthouse in Singapore. The High Court of Singapore dismissed Kwon’s legal bid to retrieve the payment, ruling that the developer was justified in retaining the funds after the deal collapsed. The penthouse, located in the Sculptura Ardmore condominium on Orchard Road, was priced at S$38.8 million and had been resold by the developer for S$34.5 million after the sale was terminated [2].

Kwon had initiated the purchase in early 2022, months before the collapse of his TerraUSD and Luna cryptocurrencies. He paid nearly half of the purchase price in option fees and subsequent payments through his wife. However, the transaction was never finalized, and the property was ultimately resold. On May 17, 2023, Kwon authorized his wife to exercise the purchase option with a S$1,000 deposit, but the required completion date of May 31 was missed, leading to the expiration of both the purchase option and the 16-month lease agreement [2].

During the lease period, Kwon and his wife paid S$640,000 in upfront rent at S$40,000 per month and conducted extensive renovations. They continued to occupy the unit until July 25, 2023, one month after the lease ended. The developer alleged a breach of contract and sought compensation for an additional month’s rent and S$90,000 in repair costs. The court ruled that the developer was entitled to an additional S$40,000 in rent but dismissed the repair cost claim [2].

The court’s decision is a significant financial blow for Kwon, who has already faced substantial losses following the 2022 collapse of the Terra-Luna ecosystem, which wiped out approximately $40 billion in investor funds. In August 2025, he pled guilty in the U.S. to charges of conspiracy and wire fraud in the case, agreeing to forfeit $19.3 million and multiple properties as part of a plea deal. His sentencing is scheduled for December 11. Additionally, Kwon and Terraform Labs are facing a lawsuit from 366 investors in the Singapore International Commercial Court, with claims ranging between US$66 million to US$90 million [2].

The Sculptura Ardmore unit was one of only three penthouses in the development, with a history of high-profile sales. In 2017, Meta co-founder Eduardo Saverin purchased a similar penthouse for S$60 million, highlighting the property’s status as a luxury asset in Singapore’s real estate market [2]. The court’s dismissal of Kwon’s claim underscores the legal and financial challenges he faces in a post-crypto collapse environment, particularly in jurisdictions with robust legal frameworks for contract enforcement.

The ruling also highlights the growing legal accountability for high-profile figures in the cryptocurrency space. As regulators and courts continue to scrutinize the actions of crypto entrepreneurs, the outcome of Kwon’s case may serve as a precedent for similar disputes involving complex financial transactions and international legal jurisdictions. With Kwon’s legal battles spanning multiple countries and financial instruments, the dismissal of this claim further complicates his path to financial and legal recovery [2].

Source: [1] Singapore Property & Real Estate, Properties for Sale & Rent (https://www.srx.com.sg/) [2] Terraform Labs co-founder Do Kwon's claim for S$19.4 million Ardmore penthouse payment rejected (https://www.businesstimes.com.sg/wealth/crypto-alternative-assets/terraform-labs-co-founder-do-kwons-claim-s19-4-million-ardmore-penthouse-payment-rejected) [3] Terraform Labs' Do Kwon Fails in $14.2M Property Lawsuit (https://coinedition.com/do-kwon-loses-legal-battle-over-14-2m-singapore-penthouse-deposit) [4] Do Kwon Penthouse Deposit: Devastating Loss for Terraform Founder (https://www.mexc.com/da-DK/news/do-kwon-penthouse-deposit-devastating-loss-for-terraform-founder/87189)