- The political and crypto sectors are abuzz with the recent revelation of Montenegrin Prime Minister Milojko Spajić’s early investment in Terraform Labs.
- This development follows Terraform Labs’ settlement with the US SEC over a $40 billion fraud charge.
- Prime Minister Spajić, who assumed office in October 2023, is embroiled in controversy involving the infamous crypto entrepreneur Do Kwon.
Montenegrin Prime Minister Milojko Spajić’s early investment in Terraform Labs is at the heart of a new controversy, intertwining political implications with the tumultuous crypto sphere.
Crypto Ties: Montenegrin PM Invested In Terra Luna
As per reports from Montenegrin media outlet Vijesti, US court documents reveal that Prime Minister Milojko Spajić was an early investor in Terraform Labs. In April 2018, he allegedly invested $75,000 to procure 750,000 Terra (LUNA) tokens, positioning him among the top 20 initial investors. This was during the early fundraising stage, from which the project raised around $13.75 million in two days.
Financial Exposure and Political Repercussions
According to Vijesti, financial analysts noted that Spajić acquired LUNA tokens at an introductory price of 10 cents each, typical of high-risk investments. LUNA’s valuation later soared to $119 in early 2022 before crashing to almost zero. If Spajić held onto his tokens, his paper losses might be close to $90 million, highlighting the cryptocurrency’s volatility.
Legal and Ethical Quandaries for Spajić
The controversy extends beyond financial losses, delving into legal and ethical implications. Spajić has contended that his former employer, rather than he personally, suffered losses from Terraform Labs’ demise, a narrative now questioned by these disclosures. Spajić’s evasion regarding his own financial losses complicates his ethical standing.
Undisclosed Investments and Regulatory Oversight
Another dimension to this controversy is Spajić’s alleged failure to disclose his LUNA holdings to the Agency for the Prevention of Corruption. His financial declarations listed assets like Bitcoin and Ethereum but omitted LUNA. This lack of transparency raises significant questions about potential conflicts of interest, especially given Do Kwon’s legal issues and the SEC’s fraud charges. Regulatory scrutiny on Spajić’s financial disclosures and his connections to Terraform Labs is intensifying.
Conclusion
Milojko Spajić’s early involvement with Terraform Labs adds another layer of complexity to the intersection of politics and cryptocurrency. The ongoing investigation will likely shed more light on his actions and decisions, emphasizing the need for transparency and ethical conduct in both financial and political arenas. This saga continues to unfold, offering critical insights into the governance challenges posed by the rapidly evolving crypto sector.
