A recent high court ruling in Singapore has denied Terraform Labs co-founder Do Kwon’s bid to reclaim an approximately $14.2 million (S$19.4 million) deposit made for a luxury penthouse, further intensifying his complex web of legal challenges globally. This decision adds another layer to the substantial legal and financial repercussions facing Kwon in the aftermath of the 2022 collapse of the Terra-Luna ecosystem, an event that wiped out over $40 billion in investor value and triggered widespread market instability.
The dispute centered on Kwon’s attempt to purchase a duplex penthouse on Orchard Road, valued at S$38.8 million. Records indicate that Kwon, through his wife, made the initial S$19.4 million deposit five months prior to the Terra-Luna collapse. Despite paying this significant sum in option fees and subsequent installments, Kwon was unable to finalize the purchase. The property was subsequently resold to another party for S$34.5 million, less than its original asking price when Kwon sought to acquire it.
Kwon argued that the forfeiture of his deposit by the developer was invalid, initiating a claim in the Singaporean High Court. However, the court dismissed his application. Concurrently, Kwon and his wife had entered into a 16-month lease for the penthouse, spanning from February 2022 to June 2023, with monthly payments of approximately S$40,000. An upfront payment of S$640,000 was made, and renovations were carried out on the unit. In May 2023, Kwon attempted to exercise the purchase option with an additional S$1,000 payment, but the transaction was not completed by the May 31, 2023, deadline. Following the expiration of the purchase option and lease in June 2023, the developers terminated the sale and retained the funds.
Despite the lease termination, Kwon’s wife continued to occupy the unit for an additional month, for which rent was paid. The developer subsequently claimed breach of contract and sought an additional month’s rent, alongside S$90,000 in repair costs. High Court Judge Philip Jeyaretnam, however, struck out the developer’s claims for repair costs, awarding only an additional month’s rent and mandating Kwon to cover the developer’s legal fees, while upholding the forfeiture of the significant deposit.
This Singapore court decision compounds Do Kwon’s extensive legal troubles. In the United States, Kwon pleaded guilty in August 2025 to charges of conspiracy and wire fraud related to the Terra-Luna collapse. As part of his plea agreement, he consented to forfeit approximately $19.3 million in assets, with his sentencing scheduled for December 11. Furthermore, Kwon and the Luna Foundation Guard are facing civil lawsuits from more than 366 investors at the Singapore International Commercial Court, with claims ranging from $66 million to $90 million. These legal entanglements underscore the heightened scrutiny and accountability now demanded from executives in the cryptocurrency sector following major market disruptions, echoing similar high-profile cases such as that of FTX executive Sam Bankman-Fried, who faced multiple fraud convictions and significant penalties.
Chris brings over six years of hands-on experience in cryptocurrency, bitcoin, business, and finance journalism. He’s known for clear, accurate reporting and insightful analysis that helps readers stay informed in fast-moving markets. When he’s off the clock, Chris enjoys researching emerging blockchain projects and mentoring new writers.