Montenegrin PM’s Hidden Investment in Terra Revealed Amid Terraform Scandal

• Prime Minister Milojko Spajic invested $75,000 in Terraform Labs in 2018, securing 750,000 LUNA tokens before its registration.
• Spajic initially denied personal investment, claiming his company invested, but SEC documents revealed his direct involvement.
• Terraform Labs’ collapse in 2022 wiped out $40 billion in the crypto market, causing major investor losses and leading to significant legal actions.

New revelations have surfaced about the early investors in Terraform Labs, the company behind the failed cryptocurrency project Terra (LUNA). Nearly a week after Terraform Labs settled with the United States Securities and Exchange Commission (SEC), court documents have highlighted a surprising connection. Montenegrin Prime Minister Milojko Spajic was among the early investors in Terraform Labs, investing $75,000 in April 2018 to purchase 750,000 LUNA tokens.

The PM’s Investment and Subsequent Denial

The controversy began when Montenegrin media outlet Vijesti reported that Spajic, who took office in October 2023, made this significant investment just days before Terraform Labs was registered in Singapore. According to the SEC’s findings, Spajic was the 16th investor in Terraform Labs during its initial fundraising phase. Despite these revelations, Spajic has consistently denied any personal investment in the project, claiming that Das Capital SG, a Singaporean company he worked for, was the actual investor.

However, SEC court documents disclosed that Spajic personally signed a contract with Terraform Labs on April 17, 2018. This direct involvement contradicts his previous statements and raises questions about his transparency regarding this investment.

Terraform Labs’ Collapse and Legal Repercussions

Terraform Labs, once a promising cryptocurrency project, saw its market cap soar to $2 billion before its dramatic collapse in May 2022. The crash resulted in a staggering $40 billion loss for the crypto market, affecting numerous investors and leading to the downfall of several crypto hedge funds. The collapse of TerraUSD (UST), a stablecoin linked to Terra, was a major factor in this financial disaster.

The legal proceedings revealed extensive fraud within the company, leading to a settlement agreement with the SEC. Terraform Labs agreed to pay $4.47 billion in fines and interest, with Do Kwon personally liable for an additional $204 million.

Spajic’s Investment Fallout

The disclosure of Spajic’s investment could have significant political repercussions. The Montenegrin Prime Minister had not previously reported owning LUNA tokens to the Agency for the Prevention of Corruption. This omission, coupled with the newfound evidence of his direct investment, casts doubt on his earlier claims and could lead to further scrutiny.