Nearly a week after Terraform Labs settled with the United States Securities and Exchange Commission (SEC) , new findings from an April court document have reignited another controversy around the failed crypto project.

SEC reveals Montenegrin Prime Minister was early investor in Terra

According to a report from the Montenegrin media outlet Vijesti, Prime Minister Milojko Spajic, who took office in October of last year, invested $75,000 in Singapore-based Terraform Labs in April 2018 to purchase 750,000 Luna coins.

Montenegrin PM among early investors in Do Kwon’s Terra (LUNA): Report image 0 Source: SEC document

According to the report Spajic was among the early investors who invested in the firm just days before its formation. Terraform Labs LTD was registered in Singapore on April 23, 2018.

Check out Cointelegraph's beginner guide to learn more about the history and future of Terra (LUNA) .

The revelation was disclosed in a court document filed by the Securities and Exchange Commission (SEC). Until the court documents were made public, the Montenegrin Prime Minister had claimed that he never personally invested in the failed crypto project; rather, Das Capital SG, a Singaporean company he worked for from 2017 to 2020, invested in Terraform Labs. However, the SEC court documents put his name on the 16th spot on the list of investors and show he was one of the first investors in the company with a contract dated April 17, 2018, with Terraform.

Montenegrin PM among early investors in Do Kwon’s Terra (LUNA): Report image 1 Source: SEC document

Terraform Labs $40 billion route

Terraform Labs was behind the infamous crypto tokens Luna and TerraUSD, which had a market cap of $2 billion before their eventual collapse in May 2022, which wiped out nearly $40 billion from the crypto market. Terra's collapse not only wiped billions from the crypto ecosystem but was also responsible for the collapse of multiple crypto hedge funds that had offered collateral to the firm.

Related: Do Kwon’s extradition to go back to Montenegro High Court after appeal .

Do Kwon, the co-founder of Terraform Labs, was found guilty of defrauding investors and was eventually arrested after months of chase by international law enforcement agencies in Montenegro in March 2023.

The surfacing of new documents establishing a direct contract between the current Montenegro Prime Minister and the failed crypto project Terraform Labs could brew fresh trouble for the Spajic for failing to reveal his investment in the project and lying about the same.

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