Investigation Launched into Alleged Financial Ties between Do Kwon and Montenegrin Opposition Party
Montenegro’s outgoing Prime Minister, Dritan Abazovic, has initiated an investigation into the alleged financial connections between Do Kwon, the founder of Terraform Labs, and Milojko Spajic, a founder and president of the Montenegrin opposition party Europe Now!
The focus of the probe is a letter sent by Kwon to Prime Minister Abazovic and others, in which he claimed to have provided financial support to Europe Now. These allegations raise concerns about potential violations of campaign finance laws and the credibility of the political movement.
Europe Now, formed by Milojko Spajić and Jakov Milatović in 2022, is a centrist and pro-European movement that aims to promote its values in Montenegro. It describes itself as an anti-corruption movement with liberal economic values. Spajic, formerly a minister of finance and social welfare in Zdravko Krivokapic’s cabinet, leads the party. Although Spajic was disqualified from running in the March 2023 presidential elections due to suspicions of holding Serbian citizenship, he remains active in the political landscape of Montenegro.
Kwon denies the allegations but confirmed that he and his company had received investments from Spajic’s company. Spajic denied the allegations, stating that he had reported Do Kwon to the Interior Ministry as soon as he arrived in Montenegro. He referred to Do Kwon as a fraudster who had defrauded millions of people, including his friends and the company he previously worked for when they invested in Do Kwon’s project in 2018. However, Prime Minister Abazovic contradicted Spajic’s statement, claiming that Spajic did not inform the Interior Ministry about Do Kwon’s presence in Montenegro.
The investigation will be conducted by the Special State Prosecution. Prime Minister Abazovic expressed concern about Spajic’s alleged connections with Kwon, emphasizing Kwon’s status as a wanted individual by both US and South Korean authorities for his involvement in a large-scale cryptocurrency fraud scheme.
Do Kwon and Han Chang-Joon, a senior executive at mobile payment provider Chai, were arrested in Podgorica in March on charges of attempting to travel with falsified documents. Since then, South Korea and the US have been seeking Do Kwon’s extradition to face criminal charges related to his cryptocurrency enterprise. On June 2, the Basic Court in Podgorica granted bail to Do Kwon and Han Chang-Joon, ordering them to stay in their lawyer’s apartment in Podgorica until the end of their trial. The defendants are scheduled to appear in court on June 16. If found guilty they could face a prison sentence of up to five years.
Spajic has been a strong proponent for fostering the growth and advancement of the blockchain industry in Montenegro. In April 2022, Montenegrin citizenship was granted to Vitalik Buterin, the founder of Ethereum, further cementing Montenegro’s ambitions to establish itself as a prominent hub for blockchain technology. Together, Spajic and Buterin have actively promoted Montenegro as an attractive destination for blockchain innovation. They recently appeared together at the EDCON 2023 conference in Podgorica, Montengro where Buterin shared insights on the future of Ethereum and the broader blockchain ecosystem.
The investigation into the financial connections between Kwon and Spajic seeks to uncover the truth behind the allegations and ensure the integrity of Montenegro’s political and economic landscape.
