Montenegro’s Prime Minister Milojko Spajić faces renewed controversy over his earlier investment in Do Kwon’s Terraform Labs.
According to a recent report, Montenegrin Prime Minister Milojko Spajić has been identified as one of the early investors in Terraform Labs.
Court documents released by the U.S. Securities and Exchange Commission (SEC) reveal that Spajić invested $75,000 in April 2018, acquiring 750,000 Luna tokens, which at their peak were valued at $90 million.
Spajić Faces Potential $90 Million Loss
The documents indicate that Spajić was the 16th investor during Terraform Labs’ initial fundraising phase. His investment came at a time when Terraform was raising capital for the development of its cryptocurrency project, which ultimately failed in 2022, leading to losses exceeding $40 billion for investors worldwide.
In 2018, Spajić entered into a contract with Terraform Labs on the first day of fundraising, acquiring Luna tokens at a significantly low price of $0.10 each. Despite the high risks associated with early-stage investments, this price was the lowest offered during subsequent funding rounds.
SEC documents revealed that 14 individuals and 10 companies contributed approximately $13.75 million to the project’s initial development and research.
The collapse of Terraform’s Luna token in spring 2022, when its value plummeted from a peak of $119 to nearly zero, resulted in significant losses for investors. However, throughout the unfolding scandal, Spajić maintained that it was his employer, not he personally, who was defrauded of the investment.
Financial experts interviewed by “Vijesti” believe that if Spajić retained his tokens through the market’s peak in early 2022, he would have faced losses nearing $90 million as the token value plummeted.
Spajić Failed to Report Luna Holdings
Spajić did not report owning Luna tokens to the Agency for the Prevention of Corruption. In his 2020 and 2021 reports, he declared owning Bitcoin worth €150,000. In subsequent reports, he listed various cryptocurrencies without specifying their values.
According to Visjeti, it remains unknown whether Spajić asked Do Kwon to return his investment or compensate for lost profits, and if so, what amount was recovered. It is also unclear if Spajić sued Terraform Labs and Kwon for fraud, as he did not address these questions.
Meanwhile, Terraform Labs and Kwon have since been held accountable for defrauding investors. The SEC secured a settlement requiring the company to pay $4.37 billion in fines and interest and Kwon to contribute $200 million to an investor compensation fund. Kwon, currently detained in Montenegro, faces extradition to either the United States or South Korea for trial.