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A Seoul court has ruled in favor of Do Kwon's wife, allowing her to retain significant real estate assets frozen by the South Korea government during the Terraform Labs investigation.
Legal Victory in Terraform Labs Case
In a major judicial win against the South Korean government, Coingape reports that the spouse of Terraform Labs founder Do Kwon has emerged victorious.
As part of the continuing inquiry into the Terra-Luna collapse, a Seoul court ruled in her favor, enabling her to maintain possession of important real estate assets that had been frozen.
The decision calls into doubt the government's original asset preservation order and brings up pertinent issues regarding the line between private and public assets in cases involving bitcoin.
It also shows how hard it is to investigate and prosecute instances in the cryptocurrency sector due to the difficulty in tracing ownership and money transfers.
Significance of Marital Assets
In all third-party objection lawsuits against the South Korean government's wealth seizure efforts, Do Kwon's wife has won comprehensively, according to the Seoul Southern District Court's verdict on June 19th. The court ruled that since the wife obtained the property while married to Kwon, it should be considered her particular property.
The assets at issue in this lawsuit consist of officetel sales rights in Nonhyeon-dong and real estate in Seoul's Seongsu-dong.
Kwon was hit with a massive asset preservation order worth 233.3 billion won ($177 million), which included the freezing of these properties. But until the ruling is finally confirmed, the court has halted the foreclosure execution on these properties.
The presumption that the real estate shares and officetel sales rights are the wife's particular property under Article 830(1) of the Civil Act was a major component in the court's judgment. The couple married in March 2021, and during the same month, they acquired the assets.
Government's Claim Overruled
The government's claim that the properties were truly owned by Kwon and were only officially held in his wife's name was rejected by the court, which is an important development.
The evidence that was presented in court suggested that Kwon's wife made the down payment on the property in Seongsu-dong by using money from her own virtual asset account. The court's decision to acknowledge the assets as her special property was heavily influenced by this finding.
