LUNA thunderstorm event follow-up: Montenegro Prime Minister's secret deal with Do Kwon exposed

A court document revealed early investment by Montenegrin Prime Minister Milojko Spajić in Terraform Labs, a stunning development that has sent shockwaves through the political and crypto asset spheres.

This news was disclosed after Terraform Labs recently reached a $40 billion fraud settlement with the Securities and Exchange Commission (SEC) in the United States.

Prime Minister Spajić took office in October 2023 and is currently at the center of this emerging controversy involving the notorious crypto entrepreneur Do Kwon.

According to the Montenegrin media “Vijesti”, Spajić was one of the initial supporters of Terraform Labs as a private investor, as disclosed in US court documents.

In April 2018, he invested $75,000 to acquire 750,000 Terra (LUNA) tokens, ranking 16th among early investors. This was in the initial fundraising stage of the Crypto asset project, which ended in failure four years later.

Vijesti quoted a financial expert as explaining that Spajić bought LUNA tokens at an apparent low price of 10 cents per token, which is a common practice for early investment due to high risks. During this period, 14 individuals and 10 companies raised a total of approximately $13.75 million in two days.

At the beginning of 2022, the LUNA token reached a high point of $119, but shortly after, with the collapse of the Crypto project, the LUNA token experienced a big dump to near zero.

If Spajić did not sell any of his holdings before the big dump, his potential loss could be close to 90 million dollars, reflecting the big pump and dump of token value.

These disclosed political implications are significant, especially considering the timing of the Do Kwon legal dispute. Kwon, who is currently in Montenegro, is facing extradition proceedings to the United States or South Korea, where he is accused of orchestrating a large-scale fraud case.

The complexity of Spajić’s case goes far beyond economic losses.

He previously stated that the company he worked for, not himself, was defrauded by Terraform Labs. However, the disclosure of his direct investments challenges this claim and raises questions about his financial disclosures and ethical behavior during his tenure.

So far, Spajić has not publicly admitted his personal financial losses in the Terraform disaster. When asked by the media, he downplayed the issue and only emphasized the losses incurred by his company.

The Premier’s Office and the Government Public Relations Office have not yet responded to questions about the nature of his investments and the current holdings of Luuna tokens.

Another controversial point involves Spajić’s compliance with regulatory requirements.

According to Vijesti, he did not disclose his ownership of LUNA tokens in the financial declaration submitted to the Anti-Corruption Bureau. Spajić’s previously disclosed financial information showed that he also owns other crypto assets, such as BTC and Ethereum, but did not specifically mention LUNA.

This negligence has caused great concern among people about transparency and potential conflicts of interest, especially considering his investment timing and subsequent regulatory investigation into Terraform Labs.

Spajić’s statement lacks clarity, while recent disclosures in US court documents paint a complex picture of Spajić’s financial and political entanglements in the world of Crypto assets.