The Seoul Southern District Court ruled in favor of Kwon Do-hyung’s wife, Ms. Lee, allowing her to reclaim her seized real estate shares. The court determined that the properties were separate assets acquired in her name during her marriage to Kwon, the CEO of Terraform Labs and a central figure in the Terra Luna incident.
Court Blocks Seizure of Ms. Lee’s Real Estate
On July 11, the court ruled that the state could not seize the real estate shares and official subscription rights under Ms. Lee’s name. The court found no evidence to prove that these assets were acquired with funds from Kwon.Â
Consequently, the seizure and enforcement of these properties have been suspended until the judgment is final.
Legal Battle Over Ownership and Asset Origins
Ms. Lee argued that the assets were acquired with her funds, including proceeds from her investments in virtual assets. The court supported her claim, stating that there was no evidence linking the funds to Kwon. The government’s argument that the properties belonged to Kwon was dismissed due to insufficient proof.
The court emphasized that Ms. Lee’s salary and continuous investment in virtual assets supported her real estate acquisition. The ruling included Ms. Lee’s 10% share in a multi-use apartment in Seongsu-dong and officetel subscription rights in Nonhyeon-dong. However, the court did not entertain this argument because, among other considerations, such as lack of substantive jurisdiction, it could not readily agree to such an argument.
Kwon fled Korea in April 2022 before the Terra Luna crash and was arrested in Montenegro for passport forgery. He faces charges, including securities fraud, in the U.S., with prosecutors claiming he deceived investors about Terra’s stability.
Last month, Terraform Labs agreed to pay $4.47 billion in recovery and fines after a jury found Kwon guilty.
Also Read: Terraform Labs Announces Strategic Sale Amid Chapter 11 Case
