Court documents made headlines about Montenegrin Prime Minister Milojko Spajic as an early investor in Terraform Labs, the company behind the collapsed LUNA and TerraUSD tokens. Not a positive look at first.
Huge gains
The U.S. Securities and Exchange Commission, the SEC released court documents which are showing that now-Prime Minister Milojko Spajic invested $75,000 in April 2018 to buy 750,000 Luna tokens. These tokens were once valued at $14 million at their peak.
Spajic’s investment happened just days before Terraform Labs was officially registered in Singapore on April 23, 2018.
Nearly a week after Terraform Labs settled with the SEC, the new information from the April court document highlighted Spajic’s involvement.
To invest, or not to invest
The problem is, Spajic had previously claimed he never personally invested in Terraform Labs, stating that Das Capital SG, a Singaporean company he worked for, had made the investment.
But the SEC documents list Spajic as an investor, showing his direct contract with Terraform Labs dated April 17, 2018. So it seems he likely lied. Or Terra’s administrators lied about the contract.
Terraform Labs was responsible for the LUNA and TerraUSD tokens, which once had a combined market cap of $2 billion before collapsing in May 2022.
The crash wiped out nearly $40 billion from the crypto market and led to the downfall of multiple crypto hedge funds.
On the run
In April 2024, a jury found Terraform Labs and co-founder Do Kwon liable for defrauding investors.
Kwon was arrested in March 2023 after months on the run, but the funny part is not because his role in Terra’s case, but because he tried to leave Montenegro with a forged passport.
Now, the new documents establishing a direct contract between Spajic and Terraform Labs could cause issues for the prime minister, raising questions about transparency and accountability.
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