In a shocking turn of events, Montenegrin Prime Minister Milojko Spajić has been revealed as one of the early investors in Terraform Labs. Court documents released by the U.S. Securities and Exchange Commission (SEC) have uncovered the Prime Minister’s investment of $75,000 in April 2018, where he acquired 750,000 Luna tokens. This investment, initially valued at $90 million at its peak, has now turned into a massive loss for Spajić and other investors.
Spajić’s involvement as the 16th investor during Terraform Labs’ initial fundraising phase raises eyebrows due to the significant losses suffered by investors after the cryptocurrency project failed in 2022, resulting in losses exceeding $40 billion worldwide. Despite the high risks associated with early-stage investments, Spajić acquired Luna tokens at a remarkably low price of $0.10 each, signaling potential misconduct in the investment deal.
As the scandal unfolded, Spajić attempted to distance himself from the investment by claiming that it was his employer, not him personally, who was defrauded. However, further investigations revealed discrepancies in his financial reports, where he failed to disclose ownership of Luna tokens to the Agency for the Prevention of Corruption. This lack of transparency raises suspicions about Spajić’s role in the investment scandal and his attempts to evade accountability.
While Terraform Labs and its founder, Do Kwon, have faced legal consequences for defrauding investors, Spajić’s actions remain shrouded in ambiguity. It is unknown whether he sought to recover his lost investment or pursued legal action against the company and Kwon for fraud. The SEC’s settlement requiring Terraform Labs to pay $4.37 billion in fines and interest, along with Kwon contributing $200 million to an investor compensation fund, highlights the severity of the scandal and the need for accountability in the cryptocurrency industry.
As Spajić faces potential extradition and trial for his involvement in the Terraform Labs investment scandal, the case serves as a cautionary tale for politicians and public figures engaging in high-risk investments. The lack of transparency, accountability, and ethical conduct exhibited in this case underscore the importance of upholding integrity and honesty in financial dealings, especially in the volatile world of cryptocurrency investments.
