Montenegro Prime Minister and Terraform Labs: Insider Revelations and In-Depth Analysis

Preface

In May 2022, a cryptocurrency valued at $40 billion, which was wildly popular among hundreds of thousands of people overseas, suddenly plummeted without warning, leading to a spectacular scene of a global financial storm that caused a widespread decline in hundreds of cryptocurrencies and made headlines in various countries, attracting widespread attention.

As founder Do Kwon fled South Korea, the turmoil did not subside; instead, it intensified under the pursuit of judicial and financial regulatory authorities in various countries. In March 2023, Do Kwon was arrested in Montenegro due to issues with a fake passport, further escalating the situation. Recently, local media revealed a shocking piece of news: the current Prime Minister of Montenegro, Milojko Spajic, was actually an early investor in Terraform Labs and held a significant amount of LUNA tokens. This news sparked widespread attention and discussion.

Investment Background of the Prime Minister of Montenegro

According to recent reports, in April 2018, Prime Minister Milojko Spajic invested $75,000 in Terraform Labs to purchase 750,000 LUNA. Based on the highest market value, this investment has yielded over a thousand times its original value, exceeding $75 million.

Although the Prime Minister of Montenegro has consistently claimed that he did not personally invest in Terraform Labs, his Singapore-based investment company, Das Capital SG, invested in the project and incurred a loss of €75,000. However, SEC documents revealed that his name was listed as the 16th investor, and he was also one of the earliest investors to sign a contract with Terraform Labs.

Do Kwon's Escape and Its Connection to Montenegro

After the collapse of LUNA, Do Kwon hurriedly left South Korea, and his whereabouts became a mystery until he was detained in Montenegro in March 2023 due to issues with a forged passport. What is puzzling is why Do Kwon chose a relatively inconspicuous country like Montenegro as a refuge. Some speculate that this may be closely related to Prime Minister Spajic. As an early investor in Terraform Labs, Spajic may have provided Do Kwon with a hiding place and support during his escape. Moreover, the extradition process surrounding Do Kwon has experienced a series of complex twists and turns involving the United States, South Korea, and Montenegro, leading to widespread speculation about whether this convoluted process is connected to Spajic.

SEC's Involvement and Settlement Agreement

The collapse of LUNA triggered a series of legal actions, with the U.S. Securities and Exchange Commission (SEC) pursuing legal action against Do Kwon and Terraform Labs, filing a lawsuit against them for fraud. In April of this year, a jury in a New York federal court found Do Kwon and Terraform Labs guilty of fraud. Initially, Do Kwon opposed the $5.3 billion fine proposed by the SEC, arguing that the SEC did not have the authority to file such a lawsuit. However, by the end of May, both parties reached a preliminary settlement, with Do Kwon and Terraform Labs agreeing to pay a total of approximately $4.6743 billion in fines. This settlement was approved by New York federal court judge Jed Rakoff on the 13th of this month.

Impact on the Cryptocurrency Market

The disastrous events surrounding LUNA have caused significant losses for investors globally and have impacted the trust and stability of the cryptocurrency market. Particularly, when this crisis may involve high-level government officials, it has sparked concerns about the regulatory framework of the cryptocurrency market. While cryptocurrencies typically pride themselves on their decentralization and anonymity, this incident has highlighted the importance of ensuring market transparency and regulation.

Personal Opinion

From this incident, we can see that even in the decentralized world of cryptocurrencies, the relationship between power and money remains inseparable. The Prime Minister of Montenegro, as a high-ranking government official, has intricate connections with a controversial cryptocurrency project, raising questions about his personal ethics and professional integrity, while also revealing potential conflicts of interest and corruption risks within the cryptocurrency market.

The impact of the LUNA incident on the cryptocurrency market is profound. It reminds us that the healthy development of the market requires not only technological innovation but also a solid legal framework and effective regulatory measures. Investors need to be more cautious, while regulatory agencies must continuously adapt to changes in emerging markets and formulate reasonable policies to protect investors while promoting the healthy development of the market.