Montenegrin Prime Minister Identified as Early Investor in Terraform Labs: Report
According to a recent report, Montenegrin Prime Minister Milojko Spaji has been identified as one of the early investors in Terraform Labs.
Court documents released by the U.S. Securities and Exchange Commission (SEC) reveal that Spaji invested $75,000 in April 2018, acquiring 750,000 Luna tokens, which at their peak were valued at $90 million.
Spaji Faces Potential $90 Million Loss
The documents indicate that Spaji was the 16th investor during Terraform Labs initial fundraising phase. His investment came at a time when Terraform was raising capital for the development of its cryptocurrency project, which ultimately failed in 2022, leading to losses exceeding $40 billion for investors worldwide.
In 2018, Spaji entered into a contract with Terraform Labs on the first day of fundraising, acquiring Luna tokens at a significantly low price of $0.10 each. Despite the high risks associated with early-stage investments, this price was the lowest offered during subsequent funding rounds.
SEC documents revealed that 14 individuals and 10 companies contributed approximately $13.75 million to the projects initial development and research.
The collapse of Terraforms Luna token in spring 2022, when its value plummeted from a peak of $119 to nearly zero, resulted in significant losses for investors. However, throughout the unfolding scandal, Spaji maintained that it was his employer, not he personally, who was defrauded of the investment.
Financial experts interviewed by Vijesti believe that if Spaji retained his tokens through the markets peak in early 2022, he would have faced losses nearing $90 million as the token value plummeted.
Spaji Failed to Report Luna Holdings
Spaji did not report owning Luna tokens to the Agency for the Prevention of Corruption. In his 2020 and 2021 reports, he declared owning Bitcoin worth 150,000. In subsequent reports, he listed various cryptocurrencies without specifying their values.
According to Visjeti, it remains unknown whether Spaji asked Do Kwon to return his investment or compensate for lost profits, and if so, what amount was recovered. It is also unclear if Spaji sued Terraform Labs and Kwon for fraud, as he did not address these questions.
Meanwhile, Terraform Labs and Kwon have since been held accountable for defrauding investors. The SEC secured a settlement requiring the company to pay $4.37 billion in fines and interest and Kwon to contribute $200 million to an investor compensation fund. Kwon, currently detained in Montenegro, faces extradition to either the United States or South Korea for trial.
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Text source: CryptoPotato
