Cryptocurrencies

Nearly a week after Terraform Labs settled with the Securities and Exchange Commission

Nearly a week after Terraform Labs settled with the U.S. Securities and Exchange Commission (SEC), new findings from an April court document have sparked another controversy surrounding the crypto project’s failure -cash.

Securities and Exchange Commission reveals Montenegro Prime Minister was one of the first investors in Terra

According to a report by Montenegrin media outlet Vijesti, Prime Minister Milojko Spajic, who took office in October 2023, invested $75,000 in Singapore-based Terraform Labs in April 2018 to purchase 750,000 Terra (LUNA) tokens.

Spagic Terra Contract. Source: SEC

According to the report, Spajic was among the first investors to invest in Terraform Labs just days before its registration in Singapore on April 23, 2018.

Check out our Cointelegraph beginner’s guide to learn more about the history and future of Terra (LUNA).

The revelation was revealed in a court document filed by the Securities and Exchange Commission. Until the release of the court documents, the Prime Minister of Montenegro claimed that he never personally invested in the failed cryptocurrency project; Instead, Das Capital SG – a Singaporean company he worked for from 2017 to 2020 – invested in Terraform Labs. However, court documents released by the Securities and Exchange Commission listed his name on a list of investors, indicating that he was an early investor in the company with a contract dated April 17, 2018.

List of Terraform Labs investors. Source: SEC

Terraform Labs’ $40 billion road

Terraform Labs was behind the infamous cryptocurrencies LUNA and TerraUSD (UST), which reached a market cap of $2 billion before their eventual collapse in May 2022, wiping nearly $40 billion from the crypto market -currencies. The collapse of Terra not only wiped billions of dollars from the cryptocurrency ecosystem, but also led to the collapse of several cryptocurrency hedge funds that had provided collateral to the company.

about: Do Kwon extradited to return to Montenegro Supreme Court after appeal.

In April 2024, a jury found Terraform Labs and its co-founder Do Kwon liable for defrauding investors in their civil case before the Securities and Exchange Commission. Kwon was arrested in March 2023 by international law enforcement after being on the run for several months.

The emergence of new documents proving a direct contract between Spajic and Terraform Labs could pose problems for the Prime Minister if he does not disclose his personal investment in the project.

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