Recently, it was revealed that Montenegrin Prime Minister Milojko Spajić was an early investor in Terraform Labs. In April 2018, Spajić invested $75,000 in the company, acquiring 750,000 Luna tokens. This investment came during Terraform Labs’ initial fundraising phase, where Spajić was identified as the 16th investor.
Unfortunately, Terraform Labs’ cryptocurrency project failed in 2022, resulting in losses exceeding $40 billion for investors globally. The collapse of the Luna token saw its value plummet from a peak of $119 to nearly zero. If Spajić had retained his tokens through the market’s peak in early 2022, he would have faced losses nearing $90 million as the token value dropped significantly.
Questionable Reporting
Despite his investment in Luna tokens, Spajić did not report owning them to the Agency for the Prevention of Corruption. In his 2020 and 2021 reports, he declared owning Bitcoin worth €150,000 but did not disclose his Luna token holdings or their value. It remains unclear whether Spajić sought to recover his investment from Do Kwon or sued Terraform Labs and Kwon for fraud.
Terraform Labs and Kwon have been held accountable for defrauding investors. The SEC secured a settlement with the company, requiring them to pay $4.37 billion in fines and interest, with Kwon contributing $200 million to an investor compensation fund. Kwon, who is currently detained in Montenegro, faces extradition to the United States or South Korea for trial.
The story of Montenegrin Prime Minister Milojko Spajić’s investment in Terraform Labs serves as a cautionary tale about the risks associated with early-stage investments and the importance of transparent reporting. As the fallout from the failed cryptocurrency project continues to unfold, it raises questions about accountability, financial integrity, and the regulatory oversight of the cryptocurrency market.
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