July 24, 2024
Latest Cryptocurrency News

Montenegrin PM Implicated in Terraform Labs Investment

Nearly a week after Terraform Labs settled with the United States Securities and Exchange Commission (SEC), new findings from an April court document have sparked fresh controversy. Prime Minister Milojko Spajic of Montenegro, who took office in October 2023, is now under scrutiny for his investment in Terraform Labs.

Early Investment in Terraform Labs

According to Montenegrin media outlet Vijesti, Spajic invested $75,000 in Singapore-based Terraform Labs in April 2018. This investment secured him 750,000 Terra (LUNA) tokens. The report highlights that Spajic was among the early investors who participated just days before the company was officially registered in Singapore on April 23, 2018.

Spajic’s Terra contract. Source: SEC

The revelation came to light through SEC court documents, which listed Spajic as one of the initial investors. Until these documents were made public, Spajic had claimed that his former employer, Das Capital SG, was the investor. However, the SEC documents clearly show Spajic’s name, indicating a direct investment contract dated April 17, 2018.

List of Terraform Labs investors. Source: SEC

Implications of Terra’s Collapse

Terraform Labs is infamous for its LUNA and TerraUSD (UST) tokens, which once boasted a market cap of $2 billion. The collapse of Terra in May 2022 resulted in a loss of nearly $40 billion in the crypto market. This collapse also led to the downfall of several crypto hedge funds that had provided collateral to Terraform Labs.

In April 2024, a jury found Terraform Labs and its co-founder, Do Kwon, liable for defrauding investors in a civil case with the SEC. Kwon, who had been on the run for months, was arrested in March 2023 by international law enforcement agencies.

Potential Political Fallout for Spajic

The new documents, which establish a direct link between Spajic and Terraform Labs, could create significant political issues for the prime minister. His failure to disclose his personal investment in the project may lead to further scrutiny and repercussions in the political arena.

Image by www.slon.pics on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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