Montenegro PM's Hidden Early Investment in Failed Crypto Firm Terraform Labs Revealed
Summary:
This article reveals that Montenegro Prime Minister, Milojko Spajic, was an early investor in the now-defunct crypto company, Terraform Labs. Despite previous claims he didn't invest personally, newly surfaced SEC documents show him as one of the initial investors when the company was registered in 2018. Terraform Labs, known for its crypto tokens Luna and TerraUSD, collapsed in 2022, wiping nearly $40 billion from the crypto market. The new findings could lead to more problems for Spajic for failing to disclose his investment and lying about it.
Just a week following the resolution of Terraform Labs' issues with the United States Securities and Exchange Commission (SEC), an April court document has resurfaced, reviving yet another contentious issue linked to the unsuccessful cryptocurrency enterprise. An unexpected revelation from the SEC indicated that the Prime Minister of Montenegro was an early investor in Terraform.
Montenegrin news platform, Vijesti reveals that Milojko Spajic, who became Prime Minister in late 2020, invested a sum of $75,000 in Terraform Labs, a company based out of Singapore, in April of 2018. This purchase granted him ownership of 750,000 Luna coins, according to an SEC document.
It's stated in the report that Prime Minister Spajic was one of the early birds investing in the company right before its inception. Terraform Labs LTD became an officially registered entity in Singapore on 23rd April 2018.
For those wanting a deeper understanding of Terra (LUNA), Cointelegraph's beginner’s guide is a great resource.
The revelation came to light through a court filing by the SEC. At a point when these legal documents weren't public yet, the Prime Minister insisted that he hadn't invested personally in this unsuccessful crypto endeavor. His claim was that, during his tenure at Das Capital SG ( 2017 - 2020) a Singapore-based firm, an investment was made in Terraform Labs. However, this is contradicted by the SEC court documents which list Spajic as the 16th investor and one of the foremost ones at that. They reference a signed agreement with Terraform dated 17th April 2018.
Terraform Labs was responsible for manufacturing two notorious crypto tokens, Luna and TerraUSD, which briefly touched a market cap of $2 billion before collapsing in May 2022. This led to erasing nearly $40 billion from the cryptocurrency market. Beyond just eliminating billions from the crypto space, Terra's demise also led to the fall of numerous cryptocurrency hedge funds that had provided collateral to the firm.
As per related news, Do Kwon’s extradition is set for reassessment by Montenegro High Court after an appeal.
Do Kwon, one of the co-founders of Terraform Labs, was found culpable of duping investors and was apprehended in March 2023 by international law enforcers in Montenegro after an extensive chase.
The emergence of fresh documents solidifying a direct agreement between the incumbent Prime Minister of Montenegro and the defunct crypto endeavor Terraform Labs might spell new problems for Spajic as he failed to disclose his investment in the project and misled others on the matter.
In related news from the Magazine, the question on everyone's mind relates to the disappearance of Polygon’s MATIC, ChainArgos suggests that every participant in the space is accountable.
Published At
6/19/2024 11:46:20 AM
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