- The Prime Minister of Montenegro was the primary investor in Terraform Labs.
- SEC filings reveal Spajic's undisclosed $75,000 funding in LUNA.
- Spajič's involvement raises questions on transparency and accountability.
Information media company Vijesti reported that court docket paperwork launched by the US Securities and Change Fee revealed that Montenegrin Prime Minister Milojko Spajic was an early investor in Terraform Labs, the corporate behind the collapse of LUNA and TerraUSD (UST) tokens. The revelation has fueled controversy and raised questions on transparency and accountability.
SEC court docket paperwork present that Spajic invested $75,000 in April 2018 to buy 750,000 Luna tokens. At their peak, these tokens have been valued at $14 million.
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Prime Minister Spajic's funding got here simply days earlier than the official registration of Terraform Labs in Singapore on April 23, 2018. The revelation reignited the controversy surrounding the failed crypto challenge, which had already confronted appreciable scrutiny. Almost every week after Terraform Labs settled with the SEC, new findings from an April court docket doc highlighted Spajic's involvement.
Subsequently, Spajic beforehand claimed that he by no means personally invested in Terraform Labs. As an alternative, he mentioned Das Capital SG, a Singapore firm he labored for between 2017 and 2020, invested. Nevertheless, SEC court docket paperwork record Spajic as an investor, displaying his direct contract with Terraform Labs dated April 17, 2018.
Terraform Labs was behind the now notorious LUNA and TerraUSD (UST) tokens. These tokens as soon as reached a mixed market cap of $2 billion earlier than their collapse in Might 2022. The collapse worn out practically $40 billion from the crypto market. Moreover, it led to the collapse of a number of crypto hedge funds that had supplied collateral to the agency.
In April 2024, a jury discovered Terraform Labs and co-founder Do Kwon responsible for defrauding traders. Kwon was arrested in March 2023 by worldwide regulation enforcement after months on the run.
The invention of recent paperwork establishing a direct contract between Spajic and Terraform Labs may trigger issues for the prime minister. He has not disclosed his private funding within the challenge, which may elevate questions on transparency and accountability.
Moreover, the controversy provides one other layer of scrutiny to Terraform Labs' troubled historical past. The failed crypto challenge had far-reaching penalties within the crypto ecosystem. In consequence, revelations about Spajic's involvement may have political implications given his present place as Prime Minister.
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