Do Kwon saga erupts into Montenegrin political scandal

Disgraced Terraform Labs Co-founder Do Kwon has an established relationship with an influential Montenegrin politician, according to the Korean news agency Yonhap.

Montenegro’s Prime Minister revealed this information days before the country’s parliamentary elections – scheduled for June 11.

During a June 8 press conference, Prime Minister Abazović told reporters he had received a handwritten note from Do Kwon detailing illegal political donations made to Milojko Spajic, from the Europe Now party, since 2018.

According to Yonhap, foreigners cannot make political donations or fund election campaigns, and all contributions must be reported to the Anti-Corruption Bureau.

Letters containing the same information were also sent to Prime Minister Abazović, Justice Minister Marko Kovac, and the Special Prosecutor’s Office. Prime Minister Abazović responded by calling for an investigation to determine the truth of the matter. He said:

“If it is true that Spici’s contact with Kwon Do-hyung is true in a situation where the United States and Korea are requesting extradition of Kwon Do-hyung, it is not good for Montenegro. We must not become a hotbed of global scammers.“

Spajic admitted working for Terraform Labs in the early days of the company in 2018 but denied receiving illegal political donations. He said:

“It’s a conspiracy theory fabricated to prevent ‘Europe now’ from winning the general election.”

Spajic served as Montenegro’s Finance Minister between December 2020 and May 2022, with Yonhap stating he was actively supporting the crypto industry during his time in office.

On March 23, Do Kwon was arrested attempting to fly from Podgorica Airport, ending a year-long manhunt following the Terra ecosystem collapse.

Estimates put investor losses at $60 billion.

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