Montenegrin Prime Ministerโs $90 Million Loss in Terraform Labs Investment
A recent report uncovered that Montenegrin Prime Minister Milojko Spajiฤ was an early investor in Terraform Labs, leading to potential losses of $90 million. The investment, made in April 2018, involved acquiring 750,000 Luna tokens, valued at $75,000 initially. However, the project ultimately failed in 2022, resulting in substantial losses for investors globally.
Investment Details and Losses
- Spajiฤ was the 16th investor during Terraform Labsโ initial fundraising, securing Luna tokens at $0.10 each.
- SEC documents revealed that $13.75 million was contributed by 14 individuals and 10 companies for project development.
- The collapse of Luna token value in 2022 led to losses, with Spajiฤ potentially facing $90 million in losses.
Failure to Report Luna Holdings
- Spajiฤ did not disclose his Luna token holdings to the Agency for the Prevention of Corruption.
- Reports showed his ownership of Bitcoin in 2020 and 2021, with subsequent reports listing various cryptocurrencies without values.
- It is unclear if Spajiฤ sought repayment or sued Terraform Labs and founder Do Kwon for fraud.
Accountability of Terraform Labs and Do Kwon
- Terraform Labs and Kwon faced repercussions for defrauding investors, with a $4.37 billion settlement and investor compensation fund contribution.
- Kwon’s detention in Montenegro raises extradition possibilities to the US or South Korea for trial.
Hot Take: Lessons Learned from Montenegrin Prime Ministerโs Investment Misstep
As a crypto investor, it’s essential to conduct thorough due diligence before investing in any project. Early-stage investments can carry significant risks, as exemplified by Spajiฤ’s experience. Transparency in reporting holdings and seeking legal recourse in instances of fraud are crucial aspects of maintaining credibility and seeking justice in the crypto space.
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