Do Kwon, founder of Terraform Labs, lost a legal battle regarding a luxury apartment in Singapore. He tried to reclaim $14 million in payments, which were forfeited when the purchase deal fell apart in 2023.
This defeat represents another setback for the embattled founder, although it’s hardly his most dire legal challenge. Still, this $14 million could’ve helped rebuild his finances or mitigate incoming fines.
Do Kwon’s Singapore Lawsuit
The Terraform Labs founder has been through a lot of trouble since his company collapsed in 2022. Although he initially pled innocent to US fraud charges, he agreed to a deal with prosecutors less than a month ago.
SponsoredNow, Do Kwon is facing another setback, involving a property in Singapore and an ensuing lawsuit:
“Kwon had set his sights on the Sculptura Ardmore unit valued at [$30] million five months before the collapse of his cryptocurrencies TerraUSD and Luna in 2022. He had selected a 7,600 square foot duplex four-bedroom penthouse on the 19th floor of the development, one of only three penthouses in the project,” local outlets claimed, paraphrasing original court documents.
Specifically, Do Kwon paid approximately half the price of this Singapore apartment, but the deal started to sour in 2023. Despite attempts to keep the contract open or continue renting the property past the sale deadline, both Kwon and his wife vacated by that July.
Subsequently, the developer reclaimed the apartment and sold it to another buyer. This led Do Kwon to take a lawsuit to Singapore’s high court, attempting to recover his lost $14 million investment.
The developer, in turn, pressed his own claims, demanding an additional month’s rent and repair costs; Do Kwon apparently began substantial renovations.
A Series of Defeats
In any case, neither party was fully satisfied. Singapore ruled firmly against Do Kwon, but claimed that he had no obligation regarding any repair costs. This represents one setback in a series of legal setbacks.
As part of his US plea deal, Do Kwon was ordered to pay over $19 million, and this property deposit in Singapore would represent the majority of this expense.
In the grand scheme of things, this is probably a smaller concern than his impending prison sentence, but it still represents the state of his financial affairs.
Although the Trump administration has seen a lot of former industry pariahs return to prominence, this isn’t true for everyone. For the time being, it doesn’t seem like Do Kwon is going to return to the industry in earnest.
