The revelation of Montenegrin PM Milojko Spajić’s early involvement in Terraform Labs has caused a stir in crypto and political circles.
The revelation of Montenegrin Prime Minister Milojko Spajić’s early involvement in Terraform Labs through a court document has caused a stir in the crypto and political worlds. This information was made public after Terraform Labs’ recent settlement with the US Securities and Exchange Commission (SEC) over a $40 billion fraud allegation against the corporation. Since taking office in October 2023, Prime Minister Spajić has been at the center of the growing controversy surrounding the infamous cryptocurrency entrepreneur Do Kwon.
Relationships With Crypto: Montenegrin PM Owns Terra Luna
Per the report published in the Montenegrin daily Vijesti, Spajić was among the first investors in Terraform Labs, acting as a private investor, according to US court records. He supposedly paid $75,000 in April 2018 to purchase 750,000 Terra (LUNA) tokens, placing him 16th among the first investors. This was in the early stages of the cryptocurrency project’s financing, which, after four years, was infamously unsuccessful.
According to a financial expert cited by Vijesti, Spajić bought the LUNA tokens at a relatively low cost of 10 cents each, which is typical for early-stage investments because of the significant risk involved. In just two days, 14 people and ten businesses raised about $13.75 million in fundraising.
The LUNA coin crashed to almost nothing soon after the crypto project failed, having peaked at $119 in early 2022. Given the sharp rise and collapse in the token’s value, Spajić might have lost close to $90 million if he had not sold his assets before the crisis.
These disclosures have critical political repercussions, particularly in light of Do Kwon’s current legal issues. In Montenegrin, Kwon is being extradited to South Korea or the United States on charges of masterminding a significant scam.
Spajić’s participation is complicated and involves more than just monetary damages. He has previously claimed that Terraform Labs had scammed the business he worked for, not him personally. However, the revelation of his direct stake casts doubt on this story and calls into question his honesty regarding his financial statements and actions as an official.
Thus, Spajić has not disclosed to the public the money he lost personally in the Terraform fiasco. His company’s losses have been the main topic of his evasive responses to media questions. Regarding the type of investments he has made and the amount of Luna tokens he currently owns, the Prime Minister’s office and the Government Public Relations Service have not yet responded to inquiries.
Controversy also surrounds Spajić’s adherence to legal and regulatory obligations. Vijesti claims that in his financial statements to the Agency for the Prevention of Corruption, he has not declared that he owns LUNA tokens. His previous financial declarations did not directly reference LUNA, although they did show ownership of other cryptocurrencies like Bitcoin and Ethereum.
Concerns over potential conflicts of interest and transparency are significantly raised by this omission, especially in light of the timing of his investments and the ensuing regulatory inquiries into Terraform Labs. Spajić’s financial and political connections to the cryptocurrency industry are complicated, evidenced by his ambiguous statements and the latest disclosures from US court records.
Terra Luna Classic (LUNC) traded at $0.000090870 at the time of publication.
