Coin Edition -
- Montenegrin Prime Minister was an early investor in Terraform Labs.
- SEC documents reveal Spajic’s undisclosed $75,000 investment in LUNA.
- Spajic’s involvement raises questions about transparency and accountability.
News media agency, Vijesti reported that court documents released by the U.S. Securities and Exchange Commission revealed Montenegrin Prime Minister Milojko Spajic as an early investor in Terraform Labs, the company behind the collapsed LUNA and TerraUSD (UST) tokens. The revelation has ignited controversy and raised questions about transparency and accountability.
The SEC court documents show Spajic invested $75,000 in April 2018 to purchase 750,000 Luna tokens. At its peak, these tokens were valued at $14 million.
Prime Minister Spajic’s investment came just days before Terraform Labs was officially registered in Singapore on April 23, 2018. This revelation has reignited controversy around the failed crypto project, which had already faced significant scrutiny. Nearly a week after Terraform Labs settled with the SEC, new findings from the April court document highlighted Spajic’s involvement.
Subsequently, Spajic previously claimed he never personally invested in Terraform Labs. Instead, he stated that Das Capital SG, a Singaporean company he worked for from 2017 to 2020, had invested. However, the SEC court documents list Spajic as an investor, showing his direct contract with Terraform Labs dated April 17, 2018.
Terraform Labs was behind the now infamous LUNA and TerraUSD (UST) tokens. These tokens once reached a combined market cap of $2 billion before their collapse in May 2022. The collapse wiped out nearly $40 billion from the crypto market. Additionally, it led to the downfall of multiple crypto hedge funds that had provided collateral to the firm.
In April 2024, a jury found Terraform Labs and co-founder Do Kwon liable for defrauding investors. Kwon was arrested in March 2023 by international law enforcement agencies after months on the run.
The surfacing of new documents establishing a direct contract between Spajic and Terraform Labs could cause problems for the prime minister. He did not disclose his personal investment in the project, which could raise questions about transparency and accountability.
Moreover, the controversy adds another layer of scrutiny to Terraform Labs’ troubled history. The failed crypto project has had far-reaching consequences in the crypto ecosystem. Consequently, the revelations about Spajic’s involvement could have political ramifications, given his current position as prime minister.
The post Terra’s Collapse: The Fallout Reaches a Prime Minister’s Office appeared first on Coin Edition.