Do Kwon, the founder of Terraform Labs, is currently facing extradition to either the US or South Korea, but his wife, Ms. Lee, just scored a major legal victory in South Korea.
Court Rules in Favor of Ms. Lee
A South Korean court ruled that certain real estate and officetel subscription rights, previously seized under Ms. Lee’s name, should not have been seized by the state. The court determined that these assets were Ms. Lee’s separate property, acquired independently during her marriage.
These assets include a fancy apartment in Seongsu-dong and officetel subscription rights in Nonhyeon-dong, worth around $183 million. The court found that the money used to buy these assets came from Ms. Lee’s earnings and cryptocurrency investments, including Bitcoin and Ethereum. These investments were managed through her personal wallets, and there was no clear evidence that Do Kwon controlled them.
Challenging the State’s Assumptions
The court’s decision directly challenges the state’s previous assumption that Do Kwon acquired the assets and registered them under Ms. Lee’s name to hide them. The court questioned why Do Kwon would only register a 10% stake in Ms. Lee’s name if he was trying to conceal criminal proceeds.
The court also rejected the state’s claim that the cryptocurrency used to buy these assets belonged to Do Kwon. They concluded that there wasn’t enough evidence to prove that Do Kwon owned the cryptocurrency or that it was the source of the funds used to buy the assets.
Legal Battles Continue
This ruling comes as Do Kwon is facing extradition proceedings in Montenegro. While the Montenegrin Supreme Court initially overturned his extradition to South Korea, the South Korean state has appealed the decision.
The legal battles surrounding Do Kwon and his family’s assets are far from over, and it remains to be seen what the final outcome will be.
