Recent revelations from court documents filed by the Securities and Exchange Commission (SEC) have stirred controversy surrounding Montenegro’s Prime Minister, Milojko Spajic, and his alleged early investment in Terraform Labs, the Singapore-based firm behind Terra (LUNA) tokens.

According to a report by Montenegrin media outlet Vijesti, Prime Minister Spajic reportedly invested $75,000 in Terraform Labs in April 2018, acquiring 750,000 LUNA tokens just days before the company was formally registered in Singapore on April 23, 2018.

Initially, Spajic had claimed that his former employer, Das Capital SG, made the investment in Terraform Labs, where he had worked from 2017 to 2020. However, SEC court documents released recently list him as the 16th investor in Terraform Labs, detailing a contract dated April 17, 2018, directly linking him to the early stages of the company.

Terraform Labs gained notoriety for its creation of Luna and TerraUSD tokens, which amassed a market capitalization of $2 billion before their collapse in May 2022, resulting in significant losses across the crypto market, estimated at nearly $40 billion. The collapse also led to the downfall of several crypto hedge funds that had extended collateral to Terraform Labs.

Co-founder Do Kwon faced legal consequences for defrauding investors, culminating in his arrest after an international pursuit that ended in Montenegro in March 2023.

The emergence of these new documents implicating Prime Minister Spajic in direct investment with Terraform Labs has sparked renewed scrutiny. It raises concerns over potential non-disclosure of personal financial interests and misinformation regarding his involvement with the failed crypto venture, posing potential political repercussions in Montenegro.