Bitrabo Editorial
A recent court document has caused a stir in political and crypto circles by uncovering Montenegrin Prime Minister Milojko Spajić’s early involvement with Terraform Labs. This disclosure emerges following Terraform Labs’ resolution with the US Securities and Exchange Commission (SEC) regarding a $40 billion fraud allegation. Prime Minister Spajić, who assumed office in October 2023, finds himself in the midst of a controversy ensnaring the infamous crypto figure Do Kwon.
Unveiling the Montenegrin PM’s Investment in Terra Luna
As reported by Montenegrin media source Vijesti, US court records reveal Spajić, in a private capacity, as one of the initial supporters of Terraform Labs. In April 2018, he purportedly invested $75,000 to secure 750,000 Terra (LUNA) tokens, ranking him 16th among the project’s early investors. This investment occurred during the project’s initial fundraising phase, which later faced a notable collapse.
Notably, Spajić acquired the LUNA tokens at a low rate of 10 cents per token, a practice often seen in early-stage investments due to their inherent risks. The fundraising phase accumulated around $13.75 million over two days from 14 individuals and 10 companies.
The value of the LUNA token, surging to $119 early in 2022, drastically declined close to zero post the project’s downfall. If Spajić did not divest any of his holdings before the crash, his potential losses could mount up to nearly $90 million, showcasing the token’s volatile trajectory.
These revelations carry significant political implications, particularly amidst Do Kwon’s legal issues. Kwon, currently in Montenegro, faces extradition proceedings to either the US or South Korea, accused of orchestrating a substantial fraud.
Spajić’s involvement complexity extends beyond financial losses. Initially claiming his company, not he personally, suffered from Terraform Labs’ fraud, the disclosure of his direct investment challenges this narrative and raises concerns about his financial disclosures and ethical conduct as a political figure.
Spajić has yet to publicize his personal financial setbacks in the Terraform matter, sidestepping media queries by emphasizing his company’s losses. His office and the Government Public Relations Service remain silent concerning his investments and current Luna token holdings.
Further controversy arises from Spajić’s compliance with regulatory mandates, with reports indicating his failure to disclose LUNA token ownership in his financial declarations to the Agency for the Prevention of Corruption. While his past disclosures revealed ownership of other cryptocurrencies like Bitcoin and Ethereum, they omitted specific mention of LUNA.
This oversight raises transparency and conflict of interest concerns, especially considering the timing of his investments juxtaposed with regulatory investigations into Terraform Labs. The murkiness surrounding his declarations and the recent US court document disclosures present a tangled web of Spajić’s financial and political engagements within the crypto realm.
At present, Terra Luna Classic (LUNC) is trading at $0.000090870.
