Montenegrin PM was One of the Earliest Terra (LUNA) Investors: SEC

UTC by Anisha Pandey · 3 min read
Montenegrin PM was One of the Earliest Terra (LUNA) Investors: SEC
Photo: Wikimedia Commons

A court document from April has revealed that Montenegrin Prime Minister Milojko Spajic was an early investor in the Terra (LUNA).

Following Terraform Labs’ recent settlement with the US Securities and Exchange Commission (SEC), a court document from April has resurfaced, stirring up the crypto community. Montenegrin Prime Minister Milojko Spajic has been named as an early investor in Terra (LUNA) token.

According to a report by local media outlet Vijesti, Spajic invested $75,000 in Terraform Labs back in April 2018, acquiring 750,000 Terra tokens (Terra price data). This early investment came just days before the company was officially registered in Singapore on April 23, 2018. The tokens were purchased at the very low price of 10 cents each, a rate reserved for the riskiest early-stage investments.

The early fundraising round for Terraform Labs, totaling around $13.75 million, was important for the initial development and research of the project. This round saw contributions from 14 individuals, including Spajic, and 10 companies, as detailed in a table compiled by SEC Assistant Chief Accountant Avron Elbaum and submitted to a New York court.

Until now, Spajic had maintained that his former employer, Das Capital SG—a Singaporean firm he worked for between 2017 and 2020 – was the actual investor. However, the SEC’s evidence contradicts this. The filing shows a direct contract dated April 17, 2018, between Spajic and Terraform Labs.

An Unknown Terra (LUNA) Loss

Interestingly, the value of the Terra  token was over $119 in the spring of 2022, a few days before it dipped to nearly zero. If Prime Minister Spajic held onto his 750,000 LUNA through the crash, he would have lost close to $90 million.

Neither Spajic nor the Government Public Relations Service ever talked regarding the number of Luna tokens the prime minister held just before the collapse. However, according to Vijesti’s report, Spajic complained about losing a substantial amount of money to his close ones. This means that Spajic likely retained at least some of the tokens during the collapse.

Terraform Labs, known for its Terra (LUNA) and TerraUSD (UST) tokens, once reached a market cap of $2 billion before its dramatic collapse in May 2022. The failure of these tokens wiped out nearly $40 billion from the crypto market. The situation had caused the downfall of multiple crypto hedge funds that had heavy exposures to Terraform Labs.

In April this year, a jury found Terraform Labs and its co-founder, Do Kwon, responsible for defrauding investors. This verdict followed Kwon’s arrest in March 2023 after months on the run.

The new documents connecting Spajic directly to Terraform Labs could have serious political repercussions. His failure to disclose this investment might lead to questions about his transparency and the ethical implications of his involvement in such a controversial project. As Prime Minister, Spajic’s direct investment in a failed crypto project could undermine public trust and his political standing.

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