Singapore Court Rejects Kwon’s $14.2M Penthouse Bid as Terra’s Fall Echoes

Do Kwon, co-founder of the now-defunct Terraform Labs, has lost a legal bid to recover a S$19.4 million (approximately $14.2 million) deposit for a luxury penthouse in Singapore. The High Court dismissed his claim after ruling that the transaction was never completed, and the property was later resold by the developer for S$34.5 million. The deposit, which represented nearly half of the total S$38.8 million purchase price for a 7,600-square-foot duplex unit at Sculptura Ardmore, was paid in early 2022 through Kwon’s wife. The property is one of three penthouses in the development, a high-end residential project along Orchard Road in Singapore [2].

The transaction included option fees and subsequent payments, totaling about 50% of the purchase cost. However, the sale was not finalized before the collapse of TerraUSD and Luna in May 2022, which wiped out approximately $40 billion in investor wealth. Kwon and his wife had also entered into a 16-month lease for the property, paying S$640,000 in advance at S$40,000 per month, and carried out renovations. Although they occupied the property beyond the lease period, the court ruled in favor of the developer, awarding an additional month’s rent of S$40,000 but rejecting a S$90,000 claim for repair costs [2].

Kwon’s legal team had argued that the developer’s retention of the deposit was invalid, but the court found no grounds to support this claim. The High Court also noted that the lease and purchase option lapsed on June 22, 2023, with the developer retaining the funds after the sale was terminated. The property was subsequently resold for S$34.5 million, further underscoring the financial loss incurred by Kwon in the failed transaction [2].

This ruling adds to a series of legal and financial setbacks for Kwon, who has been under intense scrutiny since the collapse of the Terra-Luna ecosystem. In August 2025, he pleaded guilty to conspiracy and wire fraud charges in the United States and agreed 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 face a lawsuit from 366 investors in the Singapore International Commercial Court, with claims totaling approximately US$66 million to US$90 million [2].

The court's decision highlights the growing legal accountability for high-profile figures in the cryptocurrency space. As regulatory frameworks evolve, courts are increasingly scrutinizing transactions and contracts involving significant assets, particularly in the wake of major financial collapses. The ruling also underscores the difficulty of recovering assets once they become entangled in complex legal disputes, especially across international jurisdictions [5].

The broader implications of this case may influence how courts handle similar matters involving crypto-related financial failures. Kwon’s legal challenges reflect a broader trend of increased oversight and legal action targeting cryptocurrency projects that have caused widespread investor losses. The case reinforces the message that even personal real estate transactions can become subject to intense legal examination when linked to large-scale financial events [5].

Source: [1] Do Kwon (https://en.wikipedia.org/wiki/Do_Kwon) [2] Terraform Labs co-founder Do Kwon Fails in $14.2M Property Lawsuit (https://coinedition.com/do-kwon-loses-legal-battle-over-14-2m-singapore-penthouse-deposit/) [3] Terraform Labs co-founder Do Kwon's claim for S$19.4 ... (https://www.businesstimes.com.sg/wealth/crypto-alternative-assets/terraform-labs-co-founder-do-kwons-claim-s19-4-million-ardmore-penthouse-payment-rejected) [4] Do Kwon Loses Legal Battle Over $14.2M Singapore ... (https://cryptorank.io/news/feed/0a8c8-do-kwon-loses-legal-battle-over-14-2m-singapore-penthouse-deposit) [5] Do Kwon Penthouse Deposit: Devastating Loss for ... (https://www.mexc.com/en-GB/news/do-kwon-penthouse-deposit-devastating-loss-for-terraform-founder/87189)