After the LUNA crash incident: Secret dealings between the Prime Minister of Montenegro and Do Kwon exposed

Original Title: 《 Montenegrin PM's Secret Crypto Deal With Do Kwon Exposed》

Author: Jake Simmons, Bitcoinist

Translation: Blockchain Knight

A court document has revealed Montenegrin Prime Minister Milojko Spajić's early investment in Terraform Labs, a shocking development that has sent ripples through both political circles and the crypto asset realm.

This news comes after Terraform Labs recently reached a settlement with the U.S. Securities and Exchange Commission (SEC) regarding the company's $40 billion fraud allegations.

Prime Minister Spajić took office in October 2023 and is now at the center of this emerging controversy involving the notorious crypto entrepreneur Do Kwon.

According to Montenegrin media outlet Vijesti, U.S. court documents disclose that Spajić, as a private investor, was one of the initial supporters of Terraform Labs.

In April 2018, he invested $75,000 to acquire 750,000 Terra (LUNA) tokens, ranking 16th among early investors. This was during the initial fundraising phase of the crypto asset project, which ultimately failed four years later.

Vijesti quoted a financial expert explaining that Spajić purchased LUNA tokens at a significantly low price of 10 cents each, which is common practice for early investments due to the high risks involved. During this period, 14 individuals and 10 companies raised approximately $13.75 million within two days.

In early 2022, LUNA tokens reached a peak of $119, but soon after, with the collapse of the crypto project, LUNA tokens plummeted to nearly zero.

If Spajić did not sell any of his tokens before the crash, his potential losses could amount to nearly $90 million, reflecting the volatile rise and fall in token value.

The political implications of these disclosures are significant, especially considering the timing of Do Kwon's legal troubles. Currently in Montenegro, Kwon is facing extradition proceedings to the U.S. or South Korea, where he is accused of orchestrating a massive fraud scheme.

The complexity of Spajić's involvement goes beyond mere financial loss.

He previously stated that the company he worked for, rather than himself personally, was defrauded by Terraform Labs. However, the disclosure of his direct investment challenges this claim and raises questions about his financial disclosures and ethical conduct during his tenure.

So far, Spajić has not publicly acknowledged any personal financial losses from the Terraform disaster. When responding to media inquiries, he has downplayed the issue, only emphasizing the losses incurred by his company.

The Prime Minister's office and the government public relations department have yet to respond to questions regarding the nature of his investment and the LUNA tokens he currently holds.

Another point of controversy involves Spajić's compliance with regulatory requirements.

According to Vijesti, he did not disclose his ownership of LUNA tokens in the financial declaration submitted to the Anti-Corruption Agency. Earlier disclosed financial information from Spajić indicated that he also owned other crypto assets, such as BTC and Ethereum, but did not specifically mention LUNA.

This oversight has raised significant concerns about transparency and potential conflicts of interest, especially considering the timing of his investment and the subsequent regulatory investigation into Terraform Labs.

Spajić's statements lack clarity, while the recent disclosure of U.S. court documents paints a complex picture of Spajić's financial and political entanglements with the world of crypto assets.