Did Do Kwon Plan Montenegro Escape Before Terra-Luna Crash? 

Montenegrin PM Spajic’s investment in Terraform Labs raises questions about Do Kwon’s connections and escape plans.

PM Milojko Spajić walking with an army of rats towards a gate made out of EU stars.
Created by Gabor Kovacs from DailyCoin
  • Montenegrin PM invested in Terraform Labs before its registration.
  • Do Kwon‘s escape to Montenegro raises suspicion.
  • SEC documents suggest deeper connections between Spajic and Do Kwon.

The disastrous Terra-Luna crash rocked the crypto world in 2022, easing over $40 from the market in days. The fallout was even worse, leading to a widespread crash which eventually cascaded, likely pushing FTX to bankruptcy. 

Do Kwon, the founder of Terraform Labs, ran from authorities immediately after the crash. He chose Montenegro as the place to hide from South Korean authorities. The latest revelations into the Montenegrin PM’s investments suggest why. 

Do Kwon’s Escape Plan?

A corruption scandal has rocked Montenegro since new outlets revealed the Prime Minister’s connections to Do Kwon. On Tuesday, June 18, news outlet Vijesti published documents showing that the currency PM Milojko Spajić was among the first investors in Terraform Labs, a company Do Kwon founded. 


US Securities and Exchange Commission (SEC) documents list Spajić as the 16th of Terraform Labs investors. He invested 75,000 euros in the company that would launch the infamous Terra algorithmic stablecoin, paired with the Luna token. He acquired 750,000 Luna tokens, the value of which soared to nearly $90 million before the crash​.

The latest findings raised questions about Do Kwon’s escape plans after the disastrous Terra-Luna collapse in May 2022. After the collapse, Do Kwon fled South Korea, leading to a series of evasive maneuvers to avoid arrest. Initially, Kwon escaped to Albania before making his way to Montenegro.

Kwon’s decision to ultimately settle in Montenegro, where he was later detained in March 2023, raises questions about his connections to the country’s PM, the extent of which was only revealed recently. 

Montenegrin PM Claimed He Was Not Directly Involved

Initially, Spajić denied any personal financial involvement in Terraform Labs, attributing the investment to Das Capital SG, a company he worked for. However, SEC documents contradict his public statements, revealing his direct ties to the failed crypto project.


The revelations are a problem for Spajić, as he did not report his ownership of Luna tokens to Montenegro’s Agency for the Prevention of Corruption. The PM did report owning 150,000 euros in Bitcoin in 2022 when he was the country’s Minister of Finance. 

Following the SEC’s investigation, Terraform Labs and Kwon have agreed to a substantial settlement with the agency, totaling $4.5 billion. This settlement includes disgorgement, prejudgment interest, and civil penalties. Moreover, Kwon and Terraform Labs are permanently banned from trading crypto asset securities. 

On the Flipside

  • While indicating a conflict of interest, there is no direct proof that Do Kwon and Spajić conspired for his eventual escape. 
  • Do Kwon is not the only crypto mogul who courted politicians. FTX’s Sam Bankman-Fried donated millions to US politicians, while Tron’s Justin Sun became Grenada’s ambassador to the World Trade Organization. 

Why This Matters

The collapse of Terra-Luna affected millions of investors in the crypto space, even those who did not directly hold Terra or Luna tokens. Transparency around Do Kwon’s connections should, therefore, matter to everyone in the crypto industry. 

Read more about the Terra-Luna collapse: 
The Collapse of LUNA: What Happened and Why?

Read more about Google Cloud going all in on Web3: 
Google Cloud Flexes Web3 Capabilities in Tezos Partnership

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.