Founder of Terraform Labs, Do Kwon, Faces Allegations of Connection with Montenegrin Politician
Do Kwon, the founder of Terraform Labs, finds himself once again in the midst of controversy as allegations emerge regarding his supposed connections with a prominent Montenegrin politician. Milojko Spajic, the founder of the Europe Now party, vehemently denies any involvement, sparking a heated debate. This latest development adds to a series of legal troubles and scandals that have plagued Kwon in recent months.
The allegations regarding the relationship between Kwon and Spajic were initially reported by Korean publication Yonhap News and various other sources. In response to the claims, Prime Minister Dritan Abazovic of Montenegro has called for an investigation by the Special State Prosecution into the alleged business ties between the two individuals. It is suggested that their financial association may potentially infringe upon campaign finance laws in Montenegro.
The charges of business connections between Do Kwon and Milojko Spajic originated from a letter penned by Kwon himself. The letter, addressed to Prime Minister Abazovic, outgoing Justice Minister Marko Kovac, and the Special State Prosecution, claimed that financial support had been extended to Europe Now. The veracity of these allegations will be determined by the Special State Prosecution through their investigation.
Europe Now is a centrist, pro-European political movement based in Montenegro, with Spajic serving as its founder and current president. He previously held a ministerial position in the cabinet of Zdravko Krivokapić, overseeing finance and social welfare. Despite initially intending to contest the presidential elections in March 2023, Spajic was later disqualified due to suspicions surrounding his Serbian citizenship. Dual citizenship disqualifies individuals from running for the presidency under Montenegrin law.
During a press conference, Prime Minister Abazovic expressed his concern about the alleged ties between Spajic and Do Kwon, particularly highlighting Kwon’s status as a wanted individual by both US and South Korean authorities. Abazovic stated, “It’s not good for Montenegro if Spajic had contacts with Do Kwon because the man is wanted by the US and South Korean authorities.”
Spajic, 35 years old, vehemently denies the accusations leveled against him. However, he confirmed that he and his affiliated company had indeed invested in Terra, the cryptocurrency platform founded by Do Kwon.
Meanwhile, Do Kwon himself has been embroiled in legal difficulties. The founder of Terraform Labs, which introduced fast cryptocurrency settlement and stablecoins tied to global currencies, faced significant challenges when the value of the stablecoin UST plummeted below its peg. This led to a sharp decline in its trading price, causing a staggering $40 billion wipeout across the crypto industry within a matter of days.
In March, Kwon and an associate were arrested in Montenegro on suspicion of passport fraud. Shortly afterward, the Terraform Labs founder disappeared for several weeks, intensifying the controversy surrounding him. Notably, Kwon is also wanted by authorities in the United States and South Korea due to his alleged involvement in the aforementioned financial fiasco. However, Kwon maintains his innocence, vehemently denying all charges brought against him.
Following his arrest, Kwon has been granted release on bail, requiring him to pay 400,000 euros. He is currently residing in an apartment under police supervision until his next hearing, scheduled for June 16th.
The allegations surrounding Do Kwon and his alleged links with Milojko Spajic continue to captivate attention, underscoring the need for a thorough investigation to shed light on the truth. As the legal proceedings unfold, the outcomes will undoubtedly shape the future trajectory of both individuals and potentially impact the cryptocurrency industry at large.
