Singapore Court Denies Do Kwon’s Penthouse Refund

The refusal of the refund marks an ongoing legal and financial struggle for Kwon after the collapse of Terraform. The court’s strict decision on property contracts could influence future real estate dealings.

Legal Struggles Post-Terra Collapse

Do Kwon, facing legal challenges post-Terra collapse, sought to recover a S$19.4 million refund for a penthouse purchase deposit. Singapore’s High Court, on July 26, 2025, dismissed the claim without Terra Labs’ leadership involvement.

“The loss of the S$19.4 million deposit adds to the magnitude of challenges I face following the collapse of Terra.” — Do Kwon, Co-founder and former CEO, Terraform Labs, source

Do Kwon’s wife acted as the plaintiff in the lawsuit, which was dismissed by Judge Philip Jeyaretnam. No public statements from other Terraform executives or cryptocurrency figures have been made.

Market Impact and Legal Precedents

The property transaction failure has not led to significant movements in cryptocurrency prices or DeFi markets. LUNA and TerraUSD (UST) remain defunct, continuing to show no new trading activity since their collapse.

Financial experts note the event underscores Singapore’s legal climate, confirming developers can retain deposits if buyers default. Do Kwon remarked, “The Singapore High Court has confirmed the enforcement of contractual obligations, leading to the dismissal of my deposit refund application.” — source. No immediate market repercussions have followed the court’s decision.

Do Kwon’s financial strategies may face increased scrutiny following this personal financial loss. However, regulatory authorities have not linked the ruling with existing Terraform investigations, isolating this event legally.