Montenegrin PM among early investors in Do Kwon’s Terraform Labs: Report


Nearly a week after Terraform Labs settled with the United States Securities and Exchange Commission (SEC), new findings from an April court document have reignited another controversy around the failed crypto project.

SEC reveals Montenegrin PM was early investor in Terra

According to a report from the Montenegrin media outlet Vijesti, Prime Minister Milojko Spajic, who took office in October 2023, invested $75,000 in Singapore-based Terraform Labs in April 2018 to purchase 750,000 Terra (LUNA) tokens.

Spajic’s Terra contract. Source: SEC

According to the report, Spajic was among the early investors who invested in Terraform Labs just days before it was registered in Singapore on April 23, 2018.

Check out Cointelegraph’s beginner guide to learn more about the history and future of Terra (LUNA).

The revelation was disclosed in a court document filed by the SEC. Until the court documents were made public, the Montenegrin prime minister had claimed he never personally invested in the failed crypto project; rather, Das Capital SG — a Singaporean company he worked for from 2017 to 2020 — invested in Terraform Labs. However, the SEC court documents put his name on the list of investors, showing he was one of the first investors in the company with a contract dated April 17, 2018.

List of Terraform Labs investors. Source: SEC

Terraform Labs’ $40 billion route

Terraform Labs was behind the infamous LUNA and TerraUSD (UST) crypto tokens, which reached a market cap of $2 billion before their eventual collapse in May 2022, wiping out nearly $40 billion from the crypto market. Terra’s collapse not only wiped billions from the crypto ecosystem but also led to the collapse of multiple crypto hedge funds that had offered collateral to the firm.

Related: Do Kwon’s extradition to go back to Montenegro High Court after appeal.

In April 2024, a jury found Terraform Labs and co-founder Do Kwon liable for defrauding investors in its civil case with the SEC. Kwon was arrested in March 2023 by international law enforcement agencies after being on the run for months.

The surfacing of new documents establishing a direct contract between Spajic and Terraform Labs could cause problems for the prime minister for not revealing his personal investment in the project.

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