Do Kwon placed an offer for Sculptura Ardmore before eventually not proceeding with the purchase of the unit
In a case reported by the Straits Times yesterday on 31 Oct 2025, Do Kwon, the co-founder of fallen blockchain company Terraform Labs, filed an appeal against a High Court decision to dismiss his claim for a partial refund of the amounts he paid for a $38.8 million penthouse.
Kwon had made payments totalling $19.4 million to the vendor before he ultimately decided not to go ahead with the purchase of the unit at the Sculptura Ardmore condominium in Ardmore Park. He sought a High Court declaration that the forfeiture of the sum was invalid and unlawful.
Sculptura Ardmore is a luxury condo in the prestigious Ardmore Park in Orange Grove sub-town of District 10 - Core Central Region (CCR). It is a freehold private residential condo development with an exclusive 34 units developed by Covenson Pte. Ltd. on a land size of approximately 42,690 sqft that attained its TOP in 2014.
Who Is Do Kwon?
Kwon later narrowed down his claim to the return of two sums totalling $18.4 million, which were paid to the vendor before the option to purchase was exercised. Justice Philip Jeyaretnam had dismissed Kwon’s claim on Aug 26.
On Oct 30, the judge issued written reasons, noting that Kwon had filed a notice of appeal on Sept 22 against his decision. The written decision did not link Kwon to the Singapore-based Terraform Labs or his other legal troubles from Do Kwon's cryptocurrency crash in May 2022.
The crash involving Do Kwon and the collapse of his crypto projects (especially TerraUSD (UST) and LUNA) in May 2022 had significant global repercussions across the cryptocurrency ecosystem..
Do Kwon’s company, Terraform Labs, issued the algorithm-based stablecoin UST and its linked token LUNA. The model attempted to maintain UST’s USD peg via automated mint/burn mechanics with LUNA. In May 2022, UST lost its peg; LUNA’s value collapsed almost overnight, wiping out approximately USD$60 billion in value from the Terra ecosystem's market capitalization within a week. The incident also caused a ripple effect across the broader cryptocurrency market, contributing to an estimated over USD$400 billion in losses for the wider crypto space.
Kwon fled to Montenegro while a warrant for his arrest was issued in September 2022. He was arrested in the Balkan nation in March 2023 and extradited to the United States in December 2024 after a lengthy legal battle.
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What Happened in Sculptura Ardmore's case?
In the current case of the penthouse unit at Sculptura Ardmore (the property), Kwon had offered $38.8 million for the property through his estate agent on Dec 11, 2021. The next day, the vendor, a company named Covenson - who is also the developer, indicated its agreement.
On Dec 15, the Government announced an increase in the additional buyers’ stamp duty (ABSD) for foreigners from 20 per cent to 30 per cent of a property’s purchase price. In the light of this new measure, Kwon asked for either a longer option exercise period of 18 months as he was in the process of applying for permanent residency, or a lower offer price to account for the increase in ABSD.
The option period for private property is usually 14 days, but the duration is negotiable.
The developer of Sculptura Ardmore - Covenson Pte. Ltd. (the vendor) agreed to a longer option period of 18 months in exchange for further payments being made during that period. The option to purchase was granted on Dec 23, 2021, after Kwon paid the option fee of $388,000. Kwon then made two further payments: a sum of $1.6 million on Jan 6, 2022, and a sum of $16.8 million on Feb 28 that year.
Justice Jeyaretnam found that the two sums which Kwon wanted returned to him were part of the payment made for the option to purchase of the penthouse unit at Sculptura Ardmore (the property) granted by the vendor, Covenson Pte. Ltd - who is also the developer. The judge determined that the vendor was entitled to retain the money and that the payments were “fully earned” by the vendor’s keeping the property off the market during the option period, he said. The judge also allowed the vendor’s counterclaim against Kwon for additional rent amounting to $40,000.
A tenancy agreement was also signed between Covenson and Kwon. While it was not common for such penthouse units to be rented out, Covenson stated that exceptions could be made for buyers like Mr Kwon “who expressed significant commitment to purchasing the unit” and sought to rent the unit in the short term pending their purchase of the property.
On top of the monthly rent of $40,000, a lump sum rental of $640,000 was paid. On Feb 28, 2022, the property was handed over to Kwon. Renovations were carried out and he lived there with his family from June to August 2022.
On May 17, 2023, Kwon’s wife exercised the option on his behalf. Two weeks later, on May 31, Kwon’s lawyer at the time told the vendor’s lawyer that he had “come to a settled decision not to proceed with the purchase”.
On June 22, 2023, the sale and purchase contract was terminated and the tenancy came to an end.
The property was handed back to Covenson on July 25, 2023. It has since been sold to a new buyer for $34.5 million. The option period for the deal was one month.
Kwon, who was represented by Mr Colin Seow, contended that the two sums were advance part payments for the purchase, and thus the forfeiture was invalid.
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On the other hand, Convenson, which was represented by Mr Aaron Lee, contended that the sums were paid as part of the consideration for the grant of the option. The vendor counterclaimed against Kwon for reinstatement costs, additional rent for holding the property for a month after the tenancy expired, and damages for failing to complete the deal.
Justice Jeyaretnam noted that Kwon had asked for a longer option period in the hope of changing his immigration status during that time to avoid incurring the increased ABSD. This required Covenson to keep the property off the market for a longer period, taking on the risk that property prices might decline.
"The option fee, also known as the booking fee, is a deposit paid to secure the right to purchase a property during a specific timeframe. For private properties, it is typically about 1% of the purchase price for the property. This fee demonstrates the buyer's seriousness and if the buyer proceed, it is typically credited toward the purchase price; however if the buyer backs out, the buyer forfeit the fee" said Kiwi Lim, Associate Group Director of PropNex Realty.
“It is natural that the longer the option period (and hence the longer the period during which the grantor takes this risk of falling prices), the higher the option fee that is needed to compensate for the period of risk,” said the judge.
Citing a previous case, Justice Jeyaretnam added that sums paid before the exercise of an option would typically be part of the option fee, and not part payment towards the purchase.
From The Straits Times
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