Nearly a week after Terraform Labs settled with the United States Securities and Exchange Commission (SEC), a new controversy has emerged from an April court document.
A report from Montenegrin media outlet Vijesti revealed that Prime Minister Milojko Spajic, who assumed office in October 2023, invested $75,000 in Terraform Labs in April 2018 to purchase 750,000 Terra (LUNA) tokens.
This investment was made just days before Terraform Labs was registered in Singapore on April 23, 2018.
The court document, filed by the SEC, disclosed that Spajic was one of the early investors in Terraform Labs.
Before the public release of these documents, Spajic had maintained that he never personally invested in the failed crypto project.
Instead, he claimed that Das Capital SG, a Singaporean company he worked for from 2017 to 2020, was the actual investor.
However, the SEC’s documents list Spajic as an individual investor with a contract dated April 17, 2018.
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Terraform Labs is known for the notorious LUNA and TerraUSD (UST) crypto tokens, which once reached a market cap of $2 billion before their collapse in May 2022.
This collapse wiped out nearly $40 billion from the crypto market and led to the downfall of several crypto hedge funds that had offered collateral to Terraform Labs.
In April 2024, a jury found Terraform Labs and its co-founder Do Kwon liable for defrauding investors in a civil case with the SEC.
Kwon was arrested in March 2023 by international law enforcement after being on the run for months.
The newly surfaced documents establishing a direct contract between Spajic and Terraform Labs could pose significant issues for the prime minister.
His failure to disclose his personal investment in the project raises serious concerns about transparency and accountability.
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