A recent Bloomberg report revealed that Montenegro’s Prime Minister Milojko Spajic personally invested in Terraform Labs years before the company’s collapse. The discovery raised concerns regarding the founder’s choice to flee the accusation by seeking refuge in the same country.
The founder of Terraform Labs, Do Kwonwas detained in Montenegro in March 2023 and currently faces extradition requests from the US and South Korea.
Opposition calls for resignation
According to To Bloomberg, Milojko Spajic stated that the investment was made by the company Das Capital SG, based in Singapore, of which he was a partner. However, independent Montenegrin newspaper Vijesti, which broke the news, reported that holdings grew to almost $90 million at one point.
Spajic’s LinkedIn profile shows he worked as a credit analyst and investor in Singapore from 2014 to 2020, before returning to Montenegro to serve as finance minister in late 2020.
The revelations surrounding the prime minister’s investment came at a critical time for Montenegro, where Spajic has led a “fragile” government coalition since October.
As a member of NATO and a candidate country for the European Union, the controversy surrounding the prime minister’s involvement in a collapse crypto company Pressure has increased from the opposition, which is now demanding Spajic’s resignation.
Terraform Labs lawsuit exposes prime minister’s investment
Details of the prime minister’s investment came to light in a lawsuit filed by the US Securities and Exchange Commission against Terraform Labs and Do Kwon.
Kwon, the founder of the crypto firm, is facing a lawsuit related to the $40 billion collapse of stablecoin TerraUSD in 2022.
In April, a civil trial in New York found the company bankrupt and Kwon personally liable for fraud, resulting in Terraform agreeing to pay $4.5 billion to settle the case with the SEC.
In light of these developments, Terraform CEO Chris Armani recently announced the complete dissolution of the company’s operations via a social media post on X (formerly Twitter).
While expressing disappointment with the outcome of the lawsuit, Armani confirmed that TFL would cease operations and transfer ownership of the network to the community.
On the other hand, Kwon has already fulfilled his local phrase in Montenegro after being detained with a false passport. Montenegro’s Justice Minister is in favor of sending Kwon to the US, while the courts support his extradition to South Korea. With multiple rulings, Kwon’s fate is now in the hands of the High Court.
At the time of writing, the protocol’s native token, Classic Moon (LUNC), is trading at $0.000091, with sharp price drops of over 6% and 22% in the last seven and fourteen days, respectively.
Featured image of DALL-E, chart from TradingView.com