Milojko Spajic, the Prime Minister of Montenegro, personally invested in Terraform Labs years prior to the company’s collapse, according to a recent Bloomberg report.
Do Kwon, the founder of Terraform Labs, was apprehended in Montenegro in March 2023 and is presently subject to extradition requests from the United States and South Korea.
As per Bloomberg, Milojko Spajic has asserted that Das Capital SG, a Singapore-based organization in which he was a partner, was responsible for the investment.
Spajic’s LinkedIn profile indicates that he pursued employment as a credit analyst and investor in Singapore from 2014 to 2020. Subsequently, he returned to Montenegro to assume the role of finance minister in late 2020.
The revelations regarding the prime minister’s investment have surfaced at a critical juncture for Montenegro, where Spajic has been the leader of a “fragile” governing coalition since October.
The opposition has intensified their demands for Spajic’s resignation, as the prime minister’s involvement in a collapsed crypto firm has sparked controversy in the country, which is a NATO member and European Union candidate.
The US Securities and Exchange Commission filed a lawsuit against Terraform Labs and Do Kwon in which the prime minister’s investment details were disclosed.
The $40 billion collapse of the TerraUSD stablecoin in 2022 is the subject of prosecution for Kwon, the creator of the crypto firm.
A civil trial in New York in April determined that the insolvent company and Kwon were personally liable for fraud. As a result, Terraform reached a settlement with the SEC in which they agreed to pay $4.5 billion.
Chris Armani, CEO of Terraform, recently disclosed the company’s complete dissolution in a social media post on X (formerly Twitter) in response to these developments.
Armani verified that TFL would cease operations and transfer ownership of the chain to the community, despite his disappointment in the lawsuit’s outcome.
Conversely, Kwon has already completed his local sentence in Montenegro prior to his arrest for possessing a fraudulent passport. The justice minister of Montenegro is in favor of extraditing Kwon to the United States, whereas the courts approve of his extradition to South Korea. Kwon’s fate is currently in the hands of the High Court, as a result of numerous rulings.
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