- The extradition of Do Kwon remains undecided in Montenegro, but his wife, Ms. Lee, has secured a significant legal victory in South Korea.
- The court has ruled that certain assets and subscription rights belonging to Ms. Lee should not have been seized by the state.
- Ms. Lee’s assets were deemed independently acquired, separating them from the legal controversies surrounding her husband.
Ms. Lee, the spouse of Terraform Labs founder Do Kwon, wins a major legal battle, ensuring her assets are protected amidst ongoing legal disputes.
Ms. Lee Triumphs in Legal Case Against South Korean State
A South Korean court has recently ruled in favor of Ms. Lee, the spouse of Terraform Labs founder Do Kwon, in a significant legal battle. Presiding Judge Joo Chae-kwang determined that certain real estate shares and officetel subscription rights acquired by Ms. Lee were her personal property and should not have been subject to state seizure. The assets, estimated to be worth approximately KRW 233.3 billion ($183 million), include a multi-use apartment in Seongsu-dong and officetel subscription rights in Nonhyeon-dong.
Details of the Court’s Ruling
The court emphasized that the funds used for these investments were sourced from Ms. Lee’s personal earnings and cryptocurrency investments. Significant transactions were made through her personal wallets involving Bitcoin and Ethereum. The court found no evidence suggesting that Do Kwon had any control over these assets, thus ruling that the state had no grounds for seizure. “The state does not permit the seizure of the real estate located in Seongsu-dong, Seoul, and the officetel subscription rights and subscription price refund claims located in Nonhyeon-dong based on the court’s decision to preserve collection against Kwon,” the ruling stated.
Implications of the Ruling
This decision challenges the state’s assumption that the assets were under Do Kwon’s control. The court noted that if Do Kwon had indeed acquired these assets to conceal criminal proceeds, it would be illogical to register only a 10% stake in Ms. Lee’s name instead of a more substantial share. Furthermore, the state could not substantiate claims that the crypto assets used for these purchases belonged to Do Kwon. “The burden of proof regarding the fact that the virtual assets, such as Bitcoin, which can be seen as the ultimate source of the funds for acquiring the real estate stake, are owned by Kwon, it is difficult to conclude that the owner of the virtual assets or the source of the funds for acquiring them is Kwon,” the court concluded.
Ongoing Legal Battles for Do Kwon
Do Kwon, currently detained in Montenegro, faces ongoing legal proceedings regarding his potential extradition to either the United States or South Korea. The Supreme Court of Montenegro previously overturned a decision to extradite him to South Korea, remanding the case back to the High Court in Podgorica. The South Korean state has filed an appeal against this ruling, indicating that the legal saga is far from over. These developments underscore the complexity and international scope of the legal issues surrounding Do Kwon and his family.
Conclusion
This recent legal victory for Ms. Lee underscores the nuanced and multifaceted nature of the legal proceedings involving Terraform Labs and its founder’s family. While the court’s decision offers a moment of reprieve for Ms. Lee, the overall legal battles for Do Kwon continue to unfold. This case highlights the importance of distinguishing individual financial independence and rights from the broader legal challenges that may envelop family members.
