• The Prime Minister of Montenegro was an early investor in Terraform Labs.
• SEC paperwork reveal that Spajic invested $75,000 in LUNA.
• Spajic's involvement raises questions on transparency and accountability.

Information outlet Vijesti reported that courtroom paperwork launched by the U.S. Securities and Change Fee revealed that Montenegro's Prime Minister Milojko Spajic was an early investor in Terraform Labs, the corporate behind the collapsed LUNA and TerraUSD (UST) tokens. The revelation has stirred controversy and raised questions on transparency and accountability.

In keeping with SEC courtroom paperwork, Spajic invested $75,000 to purchase 750,000 Luna tokens in April 2018. At their peak, these tokens have been price $14 million.

Spajic's funding got here simply days earlier than TerraForm Labs was formally registered in Singapore on April 23, 2018. The revelation reignited the controversy surrounding the failed crypto mission, which was already going through intense scrutiny. A few week after TerraForm Labs settled with the SEC, new findings emerged from courtroom paperwork in April revealing Spajic's involvement.

Spajic has since claimed he by no means personally invested in TerraForm Labs, as an alternative stating that the funding was made by Das Capital SG, the Singapore firm the place he labored from 2017 to 2020. Nevertheless, SEC courtroom paperwork listing Spajic as an investor and present a direct settlement with TerraForm Labs dated April 17, 2018.

Terraform Labs was behind the now notorious LUNA and TerraUSD (UST) tokens, which at one level reached a mixed market capitalization of $2 billion earlier than collapsing in Might 2022. The collapse wiped almost $40 billion from the cryptocurrency market, and in addition led to the collapse of a number of cryptocurrency hedge funds that had offered collateral to the corporate.

In April 2024, a jury discovered TerraForm Labs and co-founder Do Kwon responsible of defrauding buyers. Kwon was arrested by worldwide regulation enforcement in March 2023 after months on the run.

If new paperwork emerge documenting a direct contract between Spajic and TerraForm Labs, it may pose an issue for the prime minister, who has not disclosed his private funding within the mission, probably elevating questions on transparency and accountability.

Furthermore, the controversy provides new scrutiny to the troubled historical past of TerraForm Labs, a failed crypto mission that had far-reaching repercussions for the crypto ecosystem. Thus, revelations about Spajic's involvement may have political ramifications given the present Prime Minister's place.