Terraform Labs Co-Founder Do Kwon’s Lawsuit Over $14.2 Million Penthouse Deposit Dismissed

Terraform Labs co-founder Do Kwon encountered a significant legal hurdle as the Singapore High Court dismissed his bid to recover a forfeited deposit of approximately $14.2 million for a luxury penthouse. This deposit, equal to roughly 19.4 million Singapore dollars, represented half of the agreed purchase price for the high-end property located in the prestigious Sculptural Admore residential complex along Orchard Road in Singapore.

Details of the Luxury Penthouse and the Contract

According to industry reports, Kwon signed a purchase agreement for the penthouse in late 2021, just months before the catastrophic collapse of TerraUSD (UST) and Luna (LUNA). The property is a 7,600-square-foot apartment situated on the 19th floor and includes four bedrooms. It is one of only three such units in the exclusive complex, further underscoring its elite status.

Kwon, acting via his wife, paid an option deposit along with additional funds to secure the property. However, the transaction eventually failed to materialize, and the penthouse was later sold to another buyer for 34.5 million Singapore dollars. Developers claimed that Kwon breached the terms of the contract, leading to the forfeiture of the deposit. Kwon contested this forfeiture in court, arguing that it was invalid and sought to reclaim the funds, but Singapore’s High Court sided with the developers, solidifying their legal position.

Additional Legal Claims and Counterclaims

Aside from the primary dispute over the deposit, the property developer launched an additional claim against Kwon for breaching leasing terms, seeking 90,000 Singapore dollars for outstanding rent and repair costs. Ultimately, the Singapore High Court dismissed the demand for repair fees and awarded the developer only one month’s additional rent. Kwon was also ordered to pay the developer’s legal expenses related to the proceedings, further intensifying the financial implications of his failed real estate venture.

Broader Legal Issues Across Jurisdictions

This legal setback in Singapore is merely one chapter in Do Kwon’s multifaceted legal troubles that span across continents. In August 2025, Kwon pled guilty in the United States to charges of conspiracy to commit fraud and wire fraud. As part of his plea agreement, Kwon consented to forfeiting assets totaling approximately $19.3 million, alongside relinquishing ownership of select properties. Sentencing for Kwon in the U.S. case is slated for December 11.

Meanwhile, back in Singapore, Kwon faces another legal battle as he and the Luna Foundation Guard (LFG) are defendants in a civil lawsuit filed by 366 investors. These investors are collectively seeking damages of $66 million to $90 million, alleging financial losses tied to the catastrophic collapse of Terra’s ecosystem.

Global Legal Ramifications Following Terra’s Collapse

The implosion of TerraUSD and Luna triggered ripple effects that led to widespread scrutiny of Do Kwon’s actions, placing him at the center of various legal investigations and proceedings worldwide. Governments and courts across multiple jurisdictions have sought accountability for the fallout, which resulted in substantial investor losses and prompted broader regulatory conversations around cryptocurrency.

Kwon remains a controversial figure whose influence once dominated the blockchain world but who now finds himself entangled in legal challenges ranging from asset forfeiture to claims of fraud and negligence. As global authorities continue to pursue litigation, the fallout from Terra’s collapse serves as a cautionary tale for the cryptocurrency industry, emphasizing the critical need for transparency and reliable systems in decentralized finance.