A significant legal win has been secured by the spouse of Do Kwon, the founder of Terraform Labs, against the South Korean government. A recent ruling stated that certain real estate shares and subscription rights for an officetel that were seized in Ms. Lee’s name were not eligible for state seizure.
Victory for Do Kwon’s Partner
Judge Joo Chae-kwang from the 12th Civil Division made the decision on June 19, clarifying that these assets belonged solely to Ms. Lee, acquired independently during her marriage. The assets, which include an apartment in Seongsu-dong and Officetel subscription rights in Nonhyeon-dong, are valued at around KRW 233.3 billion (approximately $183 million).
The court highlighted that the funds for these investments came from Ms. Lee’s own earnings and cryptocurrency dealings, particularly in Bitcoin and Ethereum. These transactions were managed through her personal wallets without evidence of Do Kwon’s control over them.
The ruling stated, “Seizure of the assets in Seongsu-dong and Nonhyeon-dong is not permitted based on the decision to preserve assets against Kwon until the ruling is finalized.”
This ruling challenges the state’s previous belief that the assets were obtained by Do Kwon and registered in Ms. Lee’s name as a way to hide them. The court noted the inconsistency in the state’s argument that Do Kwon would only acquire a 10% stake in his wife’s name if he intended to conceal criminal proceeds.
Moreover, the court dismissed the state’s claim that Do Kwon owned the crypto assets used in these purchases. It was deemed challenging to prove that the virtual assets, like Bitcoin, were owned by Kwon and used for acquiring the real estate stake.
These legal developments occur amid ongoing proceedings involving Do Kwon, who is currently detained in Montenegro awaiting extradition decisions to either the United States or South Korea. Following the extradition rejection by the Supreme Court of Montenegro, the South Korean state has appealed the decision, signaling continued legal battles over the Do Kwon family’s assets.
As of now, the trading price of Terra Luna Classic (LUNC) stands at $0.00007253.
