• Montenegro’s Prime Minister Milojko Spajić was revealed as an early investor in Terraform Labs, investing $75,000 in 2018 before the collapse of the Terra Luna coin, potentially losing over $140 million.
  • The SEC has settled with Terraform Labs and its co-founder for $4.47 billion, with the company bankrupt and under community control, while Spajić faces scrutiny over his involvement.

In a startling revelation, Montenegro’s Prime Minister Milojko Spajić has been identified as an early investor in the now-defunct Terraform Labs, a company behind the notorious Terra Luna coin. Recent court documents from the US Securities and Exchange Commission (SEC) indicate that Spajić may have lost millions due to the ecosystem’s implosion in 2022.

Before assuming office as prime minister, Spajić was deeply involved in the world of cryptocurrencies. Back in April 2018, just prior to Terraform Labs’ launch in Singapore, he invested $75,000 in the company, securing 750,000 LUNA tokens at a price of 10 cents each. At its peak, the value of LUNA tokens skyrocketed to $199 each before crashing dramatically last year.

This collapse potentially translated to losses exceeding $140 million for Spajić, although it is speculated that he sold a portion of his holdings and realized profits before the crash occurred. Despite these losses, Spajić has never publicly acknowledged being a victim of the LUNA crash, previously attributing a $75,000 fraud to a company he was associated with rather than a personal investment.

The downfall of Terraform Labs has been catastrophic for many, with its algorithmic UST stablecoin’s collapse wiping out nearly $40 billion from the crypto market. This includes legal repercussions, as co-founder Do Kwon, who was recently convicted in Montenegro for passport forgery, faces impending extradition to the US or South Korea.

The SEC has reached a settlement with Terraform Labs and Kwon totaling $4.47 billion, resulting in the company ceasing operations and Kwon being permanently banned from the crypto industry. The CEO, Chris Amani, has appealed to the community to take charge of the Terra blockchain, signaling a significant transition in its governance:

“The community will need to take over ownership of the chain. I believe there are a couple teams and devs who want to do this and you should be seeing information in the forums soon.”

With Terraform Labs already in bankruptcy and its assets estimated at around $150 million, it remains uncertain how they will manage to raise the funds required by the settlement.

This revelation about Prime Minister Spajić adds a new layer of complexity to the legal challenges faced by Terraform Labs and its executives. The implications of his involvement and the broader fallout from the LUNA crash will likely continue to unfold in the coming months.

The case of Terraform Labs serves as a stark reminder of the risks inherent in the cryptocurrency market. As investors and regulators grapple with the fallout, it underscores the importance of due diligence and transparency in the industry.

Lessons Learned from the Terraform Labs Saga

As the crypto community and regulators navigate the aftermath of Terraform Labs, key lessons emerge for the future of the industry and investor protection.

By vivian

Vivian Njoroge is a seasoned crypto and blockchain news writer with a passion for decoding the complexities of the digital financial world. Armed with a keen eye for emerging trends and a knack for simplifying intricate concepts, Vivian brings a unique blend of expertise and enthusiasm to her writing. Her articles, characterized by clarity and depth, aim to keep readers abreast of the ever-evolving landscape of cryptocurrencies and blockchain technology.