Montenegrin Prime Minister Among Early Investors in Do Kwon Terraform Labs: Report
Nearly a week after Terraform Labs settled with the United States Securities and Exchange Commission (SEC), new findings from an April court document have sparked another round of controversy surrounding the failed crypto project.
The SEC revealed that the Prime Minister of Montenegro was an early investor in Terra
According to a report from Montenegrin media VJST, Prime Minister Milojko Spajic, who will take office in October 2023, spent $75,000 to buy 750,000 Terra (LUNA) tokens in Singapore-based Terraform Lab in April 2018.
According to the report, Spajic was among the early investors who invested in Terraform Labs just days before its listing in Singapore on April 23, 2018.
Check out Cointelegraph's Beginner's Guide to learn more about the history and future of Terra (LUNA).
The disclosure was made in a court document filed by the SEC. Until the court documents were made public, the Montenegrin prime minister had not personally invested in the failed crypto project; Instead, Das Capital SG – a Singapore company that worked from 2017 to 2020 – invested in Terraform Labs. However, the SEC court documents on April 17, 2018 showed that he was one of the first investors in the company and put his name on the list of investors.
Terraform Labs $40 billion way
Terraform Labs was behind crypto tokens LUNA and TerraUSD (UST) that hit a $2 billion market cap before crashing in May 2022, wiping out nearly $40 billion from the crypto market. Terra's collapse not only wiped out billions from the crypto ecosystem, but also caused the collapse of many crypto hedge funds that were underwriting the firm.
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In April 2024, a jury found Terraform Labs and co-founder Do Kwon guilty of defrauding investors in a civil suit with the SEC. After months of hiding, Kwon was arrested by international law enforcement agencies in March 2023.
The development of new documents establishing a direct contract between Spajic and Terraform Labs may cause problems for the Prime Minister by not showing his personal investment in the project.
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