Do Kwon, notorious in crypto circles for the Terra Crash Scandal, finds himself embroiled in an unfolding political conspiracy saga. So much has been happening around Do Kwon and his incarceration in Montenegro. In light of the most recent elections in Montenegro held on June 11th, 2023, evidence points to the fact that Kwon played a hand in illegal political donations made to Milojko Spajić, from the Europe Now party, since 2018. As they say in crypto and politics, follow the money and see what that nets you.
Intermarrying politics and crypto is nothing new
During a press conference on June 8, Montenegrin Prime Minister Abazović informed reporters that he had received a handwritten note from Do Kwon documenting illegal political contributions made to Europe Now party member Milojko Spajić since 2018. From December 2020 to May 2022, Spajic served as Montenegro’s Minister of Finance. During his tenure in office, he reportedly actively supported the crypto industry.
A reliable source has given insider details to Cryptopolitan at great length, and get this – politics in bed with crypto in Montenegro, do we expect anything less? Crypto is for the big players. According to our source, an insider from the political party URA (United Reform Action), he is certain that Spajić received illegal political donations. This has turned Montenegro politics into a drama driven by a few. The defense minister and current Prime Minister are at loggerheads on the truth of the matter – or is it personal interest?
Two parties are moving for alliance and working partnership in Montenegro for the “good of the country”. According to our source, the political members involved in Do Kwon’s bribery case also expect to still be part of the coalition when the dust settles in the government with Spajic and Evropa Sad.
According to the most recent news is that Evropa Sad is talking about working with the pro-Serb democrats. Our source states that the entity accepted an apology from a pro-Serb guy in the North, in Berane, who is set to head their mayoral team there.
There’s a twist where Evropa Sad, despite the controversy, has been seen negotiating with pro-Serb democrats and accepting an apology from a pro-Serb figure in Berane. It is suggested that with the support of ZBCG, Croats, and Bosniaks, Evropa Sad could secure a majority government.
Evropa Sad and Spajić dismiss the controversy as a fabrication, while URA members believe it has been proven in court and isn’t resolved yet. There are also questions surrounding why there have been “no negotiations” with URA – whether it’s because of the Do Kwon financing scandal or due to perceived corruption within URA. However, it’s clear that Do Kwon wants to avoid extradition at all costs.
According to our source, it seems that this controversy has caused a significant divide between two main pro-EU parties that support reforms and are against reunification with Serbia, possibly forcing one of them to cooperate with pro-Serb groups.
The pro-Serb groups have a negative reputation due to prior mishandling of the country’s cybersecurity, showing reluctance towards reforms, and apparent wishes for the country to reunify with Serbia.
Do Kwon sentenced to 4 months in a Montenegro jail
In a developing story, Do Kwon has been sentenced to four months in prison by a Montenegrin court after being found guilty of document forgery. The court has also ordered the confiscation of two Costa Rican passports, two Belgian passports, and two identity cards belonging to Kwon and fellow Terra executive Han Chang-Joon.
However, Do Kwon has denied the forgery charges and told the Montenegrin Basic Court he received his allegedly forged passports and travel documentation through third-party “agencies.” Kwon says he had no reason to doubt his Costa Rican Identity passport’s authenticity, having used it for so long.
The prosecution probed Kwon for additional information about the agency he used to obtain his passports. However, Kwon replied that he “couldn’t remember exactly” and that he knew only that the agency’s name was “in Chinese.”
In addition to disputing forgery of travel documents, Kwon denied allegations that he made financial contributions to Montenegro’s former finance minister and current Europe Now party leader, Milojko Spajić,
The unfolding situation illustrates a complex political situation marked by allegations of corruption, uncertain coalition formations, and potential foreign influence. There’s a clear divide between pro-EU and pro-Serb factions, with political maneuverings complicating the formation of a new government.
Where’s the money?
This seeming political maneuver by Do Kwon overshadows a greater evil, the Terra Crash from which we can draw broader lessons about financial fragility in an environment where a regulatory safety net does not exist, pseudonymous transactions, and market participants monitor the financial health of the system.
Terra, the third largest cryptocurrency ecosystem after Bitcoin and Ethereum, collapsed in three days in May 2022 and wiped out $50 billion in valuation. Wealthier and more sophisticated investors were the first to run and experienced much smaller losses. Poorer and less sophisticated investors ran later and had larger losses. Expect a whitewash coming soon. The question remains, does Kwon have access to what’s left of the $50 billion stash?