Nietzsche has a famous quote: “I’m not upset that you lied to me, I’m upset that from now on I can’t believe you.” Today, I will share news about a lie. A piece of news that hit the cryptocurrency world like a bomb today created a shock effect. The interesting development concerns Montenegro Prime Minister Milojko Spajic. According to the development, Prime Minister Spajic is among the first investors in Terraform Labs. Moreover, this investment took place just a few days before the company was registered in Singapore on April 23, 2018.
SEC Reveals Montenegro Prime Minister as Early Investor in Terra
According to the statement made by the SEC, Spajic purchased 750,000 Terra (LUNA) tokens by investing $75,000 in April 2018, before taking office in October 2023. This investment took place just a few days before the company’s establishment. According to court documents filed by the SEC, Spajic signed a contract with Terraform Labs on April 17, 2018, becoming one of the company’s early investors.
Before the court documents were made public, the Montenegro Prime Minister claimed he had never personally invested in the failed crypto project. Instead, he stated that he worked at a Singapore-based company called Das Capital SG between 2017 and 2020, which invested in Terraform Labs. However, SEC court documents revealed that he was listed as the 16th investor and that he signed a contract with Terraform on April 17, 2018, making him one of the company’s first investors.
The $40 Billion Terraform Journey
As is known, Terraform Labs experienced its final collapse in May 2022. This company is infamous for supporting cryptocurrencies like Terra (Luna) and TerraUSD, which wiped out approximately $40 billion from the crypto market. We all know how much damage Terra’s collapse caused to the cryptocurrency ecosystem. The collapse of Terra also led to the downfall of many crypto hedge funds that provided collateral for this project.
Terraform Labs’ co-founder Do Kwon was found guilty of defrauding investors and was arrested by international law enforcement in Montenegro in March 2023.
New documents may reveal a direct contract between the current Montenegro Prime Minister and Terraform Labs. This situation seems likely to lead to a new scandal due to the Prime Minister’s failure to disclose his investment in the project and lying about it. Let’s conclude the scandal by linking it to the above-mentioned Nietzsche quote: The cryptocurrency world was not upset by the Montenegro Prime Minister’s lie, but they were upset that they will no longer believe his words.
