The court's decision on the refund request highlights ongoing legal and financial struggles faced by Do Kwon following the collapse of Terraform.
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**.
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."
Future of Do Kwon and His Financial Strategies
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.
Court rulings on deposit refunds and contractual compliance can influence the real estate market and its participants in Singapore, thus altering approaches to future transactions.
