Fresh information from U.S. court filings has brought to light Montenegro Prime Minister Milojko Spajic’s personal investment in the failed Terraform Labs crypto project, led by fugitive Do Kwon.
Before taking office as Prime Minister, Spajic, who is also a crypto entrepreneur, invested $75,000 in Terraform Labs back in 2018. This investment saw him acquire 750,000 LUNA tokens at 10 cents each. At its peak, the value of LUNA tokens reached $199 per token, potentially turning Spajic’s initial investment into over $140 million. It is speculated that he may have sold some of his holdings before the collapse of the project, thus profiting from his investment.
The revelation of Spajic’s connection to Terraform Labs raises questions about Kwon’s decision to seek refuge in Montenegro as he tried to evade prosecution. Kwon, who has been held in Montenegro since March 2023, was found with a false passport and now faces extradition requests from both the U.S. and South Korea.
While Spajic has not portrayed himself as a victim of the LUNA crash, earlier statements suggested that a company he was affiliated with suffered a $75,000 fraud rather than his personal investment being affected. Although this new information does not definitively prove any misconduct on Spajic’s part, it certainly adds an intriguing layer to the ongoing developments surrounding Kwon and Terraform Labs, potentially impacting the legal proceedings against Kwon.
The collapse of Terraform Labs, the company behind the algorithmic UST stablecoin, resulted in crypto holders losing nearly $40 billion. Furthermore, the SEC reached a settlement with Terraform Labs and Kwon totaling $4.47 billion, leading to the cessation of the company’s operations and a lifelong ban for Kwon from the crypto industry.
The bankruptcy of various high-profile cryptocurrency companies in recent years, like Voyager Digital, Celsius Network, Three Arrows Capital, BlockFi, FTX, and Core Scientific, underscores the volatility and legal complexities within the crypto ecosystem. These cases have highlighted the need for regulation and transparency in the industry to protect investors from such risks and uncertainties.