A court document has revealed that the Prime Minister of Montenegro, Milojko Spajić, had early investments in Terraform Labs, a development that has caused shockwaves in the political and crypto asset spheres. This news came to light after Terraform Labs recently reached a settlement with the US Securities and Exchange Commission (SEC) over $40 billion fraud allegations.
Prime Minister Spajić, who took office in October 2023, is now at the center of this emerging controversy, which involves the notorious crypto entrepreneur Do Kwon. According to Montenegrin media outlet “Vijesti,” the US court documents disclose that Spajić was one of the initial supporters of Terraform Labs as a private investor.
In April 2018, he invested $75,000 to acquire 750,000 Terra (LUNA) tokens, ranking 16th among early investors. This was during the initial fundraising stage of the crypto asset project, which ended in failure four years later.
Vijesti quotes a financial expert explaining that Spajić purchased LUNA tokens at an apparent low price of 10 cents per token, which is a common practice in early-stage investments due to the high risk involved. During this period, a total of 14 individuals and 10 companies raised approximately $13.75 million in funding within two days.
In early 2022, LUNA tokens reached a high of $119, but soon plummeted close to zero with the collapse of the crypto project. If Spajić did not sell any of the tokens he held before the crash, his potential losses could amount to nearly $90 million, reflecting the volatile nature of token value.
The political significance of these disclosures is substantial, especially considering the timing of Do Kwon’s legal disputes. Currently residing in Montenegro, Kwon is facing extradition procedures to the United States or South Korea, where he is accused of masterminding a large-scale fraud case.
The complexity of Spajić’s involvement goes beyond just economic losses. He previously stated that it was his company, not himself, that was defrauded by Terraform Labs. However, the disclosure of his direct investment challenges this claim and raises questions about his financial disclosures and ethical behavior during his tenure.
So far, Spajić has not publicly acknowledged his personal financial losses in the Terraform disaster. He has avoided addressing this directly with the media and has only emphasized the losses suffered by his company.
The Prime Minister’s office and the government’s public relations department have not responded to questions regarding the nature of his investments and the Luna tokens he currently holds.
Another point of controversy involves Spajić’s compliance with regulatory requirements. According to Vijesti, he did not disclose his ownership of LUNA tokens in the financial declaration submitted to the Anti-Corruption Agency. Spajić’s previously disclosed financial information shows that he owns other crypto assets such as BTC and Ethereum, but there is no specific mention of LUNA.
This negligence has raised significant concerns about transparency and potential conflicts of interest, especially considering his timing of investment and the subsequent regulatory investigation into Terraform Labs.
Spajić’s statements lack clarity, and the recent disclosure of US court documents paints a complex picture of his financial and political entanglements with the crypto asset world.