Montenegrin Prime Minister Milojko Spaji? has been identified as one of the early investors in Terraform Labs, according to recent court documents released by the U.S. Securities and Exchange Commission (SEC). Spaji? reportedly invested $75,000 in April 2018, acquiring 750,000 Luna tokens, which reached a peak value of $90 million.
Spaji?’s investment came during Terraform Labs’ initial fundraising phase, where he was the 16th investor. The project aimed to develop a cryptocurrency that unfortunately failed in 2022, resulting in losses exceeding $40 billion for investors worldwide.
Despite the risks associated with early-stage investments, Spaji? purchased Luna tokens at a low price of $0.10 each. The collapse of the Luna token value in 2022 led to significant losses for investors, with experts estimating that Spaji? could have faced losses nearing $90 million if he had held onto his tokens until the market’s peak.
Interestingly, Spaji? did not report owning Luna tokens to the Agency for the Prevention of Corruption in his financial reports for 2020 and 2021. While he declared owning Bitcoin worth €150,000, he listed various cryptocurrencies without specifying their values in subsequent reports.
It remains unclear whether Spaji? sought to recover his investment or lost profits from Terraform Labs and its founder, Do Kwon. The SEC has since secured a settlement with the company, requiring them to pay $4.37 billion in fines and interest, with Kwon contributing $200 million to an investor compensation fund. Kwon, who is currently detained in Montenegro, faces possible extradition to the United States or South Korea for trial.
The case highlights the risks involved in early investments in cryptocurrency projects and the importance of transparency in reporting investments to regulatory authorities. Investors should exercise caution and due diligence when considering such opportunities to avoid potential losses.