Montenegro PM’s Crypto Crisis: $90M Stake in Collapsing Terraform Labs Revealed

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In a world where global finance and politics intersect, a breathtaking revelation in relation to Montenegro’s Prime Minister Milojko Spajic recently came to light. As it turns out, Mr. Spajic had a personal stake in Terraform Labs, a crypto firm teetering on the edge of collapse, and his investment was made years ahead of this catastrophic downfall.

What makes the matter even more intriguing is the fact that Terraform Labs’ co-founder, Do Kwon, sought refuge in Montenegro, the same country where the high-ranking politician made his significant investment. Kwon was apprehended within Montenegro’s jurisdiction in March 2023 and currently sits amid a tug-of-war for his extradition requested by both the United States and South Korea.

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Prime Minister Spajic endeavored to explain his controversial business dealings by asserting that his investment originated from Singaporean entity Das Capital SG, where he held a partnership. Yet, an independent local daily, Vijesti, confounded the narrative by claiming the investments swelled to a staggering $90 million at heights of success. His LinkedIn biography confirms his sojourn in Singapore between 2014 and 2020, holding positions of note, such as credit analyst and investor. He was then pulled back to his homeland to take up the mantle of finance minister before ascending to the premiership.

The unearthed revelation has arrived at a precarious juncture as Spajic is leading a fragile ruling coalition in Montenegro and any negative publicity might have dire consequences for his administration. To further amplify the tense situation, Montenegro is a part of NATO and is vying for European Union membership. The controversy surrounding the head of state’s involvement in a failing crypto company has ramped up the opposition’s calls for Spajic’s resignation.

Pertinent details about Prime Minister Spajic’s investment were laid out in a lawsuit, filed by the US Securities and Exchange Commission, against the beleaguered Terraform Labs and Do Kwon. Kwon individually is standing trial for his involvement with the $40 billion meltdown of the TerraUSD stablecoin in 2022. In April, both the financially ravaged company and Kwon were found culpable for committing fraud during a civil trial in New York. The fallout resulted in Terraform agreeing to pay a colossal $4.5 billion as a settlement to the SEC.

Adding a final twist to the tale, Terraform’s CEO Chris Armani, in the aftermath of the unsuccessful lawsuit, made a candid announcement about the company’s irreversible dissolution via a social media post on X, formerly known as Twitter. The CEO expressed his discontent with the verdict and confirmed the halting of all company operations and the transfer of ownership of the chain to the community.

Kwon, despite having served his local sentence in Montenegro under the charges of using a fake passport, is still not out of hot water. An extradition battle awaits him with the Montenegro justice minister siding with the US, while local courts advocate for his extradition to South Korea. The final decision on Kwon’s fate hangs in the balance and rests with the High Court.

Meanwhile, Terraform Labs keeps incurring losses with Luna Classic (LUNC), the protocol’s native token, currently trading at a meager $0.000091. This dip reflects a sharp decline of over 6% and 22% in the last seven and fourteen days, respectively. As the Prime Minister of Montenegro and Do Kwon look ahead to an uncertain future, the world of cryptocurrency witnesses another tumultuous chapter.