Recently released documents from the US Securities and Exchange Commission (SEC) have revealed a surprising connection between Montenegrin Prime Minister Milojko Spajić and the now-defunct Terraform Labs. The documents show that Spajić was an early investor in the project, purchasing 750,000 Luna tokens for $75,000 in April 2018. At its peak, this investment was worth a staggering $14 million.

This new information raises questions about Spajić's financial dealings and his involvement with Terraform Labs. The prime minister had previously claimed that only the Singaporean company he worked for had invested in the project, but the SEC's documents reveal that he had a personal stake in the company. This contradiction could lead to legal implications for Spajić, as he failed to disclose his investment earlier.

Terraform Labs was the brainchild behind the infamous LUNA and TerraUSD cryptocurrencies, which skyrocketed to a $2 billion market cap before crashing in May 2022. The collapse of Terraform Labs wiped out nearly $40 billion from the crypto market, causing multiple crypto hedge funds to fail. In April 2024, a jury found Terraform Labs and its co-founder, Do Kwon, liable for defrauding investors in a civil SEC case.

The SEC's documents reveal that Spajić and other early investors paid a total of $13.75 million to fund the initial development of Terraform Labs. Financial experts note that the prime minister acquired the Luna tokens at a low price of 10 cents each, which was a high-risk investment at the time. The documents also show that Spajić signed a contract with Terraform Labs on April 17, 2018, contradicting his earlier claims.

In conclusion, the revelation of Montenegrin Prime Minister Milojko Spajić's involvement in Terraform Labs' early funding raises questions about his financial dealings and judgment. The collapse of Terraform Labs serves as a cautionary tale about the risks and potential for fraud in the rapidly evolving crypto market. As the crypto industry continues to grow, it is essential to ensure transparency and accountability to prevent similar cases in the future.