Recently disclosed documents from the U.S. Securities and Exchange Commission (SEC) reveal that Montenegrin Prime Minister Milojko Spajić was an early investor in Terraform Labs. The court documents show that on April 23, 2018, Spajić invested $75,000 to purchase 750,000 Luna tokens. At its peak, this investment was worth $14 million. This new information sheds light on Spajić’s financial dealings and his early backing of one of the biggest crypto projects.
Early Investment by Montenegrin Prime Minister and Legal Implications
The court document filed by the SEC revealed that the Montenegrin prime minister was one of the first investors in the failed Terraform Labs crypto project, despite his previous claims that only the Singaporean company he worked for had invested. The document showed he signed a contract with Terraform Labs on April 17, 2018.
This new evidence of the prime minister’s direct personal investment in the project could cause problems for him for not disclosing it earlier. The new document shown below as disclosed by the SEC has contradicted initial claims.
Financial experts stated that the prime minister acquired 750,000 Luna tokens at 10 cents each, which is considered the lowest price at the time of purchase due to the high risk of investing at such an early stage. The SEC detailed that around $13.75 million was paid by the prime minister and other early investors to Terraform Labs on April 23 and 24 to fund the initial development.
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The Rise and Fall of Terraform Labs
Terraform Labs was behind the infamous LUNA and TerraUSD cryptocurrencies that skyrocketed to a $2 billion market cap before crashing in May 2022, wiping out nearly $40 billion from the crypto market. The Terra collapse decimated billions from the crypto ecosystem and caused multiple crypto hedge funds offering collateral to the firm to fail.
In April 2024, a jury found Terraform Labs and co-founder Do Kwon liable for defrauding investors in a civil SEC case. Kwon was arrested in March 2023 by international law enforcement after months on the run. This high-profile case reflects the risks and potential for fraud in the volatile, rapidly evolving crypto market.
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