Montenegrin Prime Minister Identified as Early Investor in Terraform Labs: Report

According to a recent report, Montenegrin Prime Minister Milojko Spajic was identified as one of the first investors in Terraform Labs.

Court documents released by the US Securities and Exchange Commission (SEC) reveal that Spajic invested $75,000 in April 2018, receiving 750,000 Luna tokens, which at their peak were worth $90 million.

Spajic faces a potential loss of $90 million

the documents Indicates Spajic was the sixteenth investor during Terraform Labs' seed fundraising phase. His investment came at a time when Terraform was raising capital to develop its own cryptocurrency project, which ultimately failed in 2022, resulting in losses of more than $40 billion for investors around the world.

In 2018, Spajic entered into a contract with Terraform Labs on the first day of the fundraiser, where he received Luna tokens at a very low price of $0.10 each. Despite the high risks associated with early-stage investments, this price was the lowest offered during subsequent funding rounds.

Securities and Exchange Commission documents revealed that 14 individuals and 10 companies contributed approximately $13.75 million to the project's initial development and research.

The collapse of Terraform's Luna token in the spring of 2022, when its value fell from a peak of $119 to nearly zero, led to significant losses for investors. However, throughout the unfolding scandal, Spaich maintained that it was his employer, not him personally, who had been defrauded out of the investment.

Financial experts interviewed by Vijesti believe that if Spaji had held its tokens during the market peak in early 2022, it would have faced losses approaching $90 million as the value of the token declined.

Spajic failed to report Luna Holdings

Spajic did not report his possession of Luna tokens to the Corruption Prevention Agency. In his reports for 2020 and 2021, he announced that he owned Bitcoin worth 150,000 euros. In subsequent reports, he listed several cryptocurrencies without specifying their values.

According to Visgeti, it is still unknown whether Spajek asked Do Kwon to reinvest or replace lost profits, and if so, how much was recovered. It is also unclear whether Spajic has sued Terraform Labs and Kwon for fraud, as he did not answer those questions.

Meanwhile, Terraform Labs and Kwon have since been charged with defrauding investors. The SEC obtained a settlement requiring the company to pay $4.37 billion in penalties and interest, and for Kwon to contribute $200 million to an investor compensation fund. Kwon, currently detained in Montenegro, faces extradition to the United States or South Korea to stand trial.