- The Prime Minister of Montenegro, Milojko Spajić, has been unveiled as one of the initial investors in the controversial Terraform Labs, according to newly surfaced court documents.
- These records expose Spajić’s investment amounting to $75,000 in April 2018, which earned him 750,000 Luna tokens that peaked at a staggering value of $90 million.
- The U.S. Securities and Exchange Commission (SEC) disclosures place Spajić as the 16th investor during Terraform Labs’ initial funding phase.
Delve into the financial intricacies of early-stage crypto investments and the sweeping impact of Terraform Labs’ high-profile collapse.
Spajić Faces Potential $90 Million Loss
The released documents illustrate that Spajić became an early investor in Terraform Labs during its nascent funding phase, acquiring Luna tokens at an initial low price of $0.10 each. Despite the alarming risks linked with such preliminary investments, this was the most advantageous price during any subsequent funding rounds.
In 2018, Spajić’s early financial commitment marked the inception of Terraform Labs’ ambitious cryptocurrency project, a venture that notoriously disintegrated in 2022, incurring losses exceeding $40 billion globally.
Analysis reveals that fourteen individuals and ten entities collectively injected approximately $13.75 million into the project’s foundational development and research during its initial phase.
Impact of the Luna Token Collapse
The catastrophic downturn of the Luna token in the spring of 2022, plummeting from a record high of $119 to nearly worthless, caused substantial financial detriment to investors. Despite the overwhelming controversy, Spajić has consistently asserted that the financial loss was borne not by him personally, but by the institution he represented.
Financial analysts suggest that had Spajić retained his token holdings until the market peak in early 2022, his losses would approximate $90 million.
Spajić Failed to Report Luna Holdings
Documentation indicates that Spajić did not disclose his Luna token assets to the Agency for the Prevention of Corruption. His submissions for 2020 and 2021 reflected Bitcoin holdings valued at €150,000, and subsequent filings listed various cryptocurrencies without divulging specific values.
There remains ambiguity regarding whether Spajić sought restitution or compensation from Terraform Labs’ founder Do Kwon, or whether litigation for fraud was pursued.
In stark contrast, Terraform Labs, alongside Kwon, have been held liable for investor deception. The SEC triumphantly secured a settlement agreement mandating Terraform Labs to disburse $4.37 billion in fines and interest, and Kwon to contribute $200 million to an investor compensation fund. Kwon, now detained in Montenegro, awaits potential extradition for trial in either the United States or South Korea.
Conclusion
The saga of Montenegrin Prime Minister Milojko Spajić’s early investment in Terraform Labs underscores the volatile nature of early-stage cryptocurrency investments. As court documents continue to unfold, they paint a detailed picture of the financial devastations and regulatory repercussions following the ill-fated Luna token crash. The narrative serves as a cautionary tale for investors and highlights the importance of due diligence and transparent disclosure in the crypto realm.
