Montenegro Urged to Probe Crypto Fugitive's Ties with Party Leader

Montenegro’s outgoing Prime Minister Dritan Abazovic urged prosecutors to investigate claims that fugitive South Korean cryptocurrency trader Do Kwon had financial relations with Europe Now political movement leader Milojko Spajic.

Montenegrin police escort South Korean cryptocurrency mogul Do Kwon in Podgorica. Photo: EPA-EFE/Boris Pejovic

Outgoing Prime Minister Dritan Abazovic, political parties and NGOs called on the Special State Prosecution on Tuesday to investigate claims that there were business relations between Do Kwon, the fugitive founder of the collapsed cryptocurrency Terra, and the leader of the Europe Now political movement, former Finance Minister Milojko Spajic.

Media reported on Monday that Do Kwon sent a letter to Abazovic, outgoing Justice Minister Marko Kovac and the Special State Prosecution, claiming that he financed Europe Now.

Sources within the government and prosecution told BIRN unofficially that Do Kwon’s handwritten letter to Abazovic, Kovac and the prosecution claimed that he has known Spajic since 2018 and that they held meetings in the Serbian capital Belgrade.

According to opinion polls, the recently-formed Europe Now movement could lead the new government after parliamentary elections on June 11 and Spajic could become the next prime minister.

Abazovic confirmed that he received Do Kwon’s letter but stressed that he informed the prosecution.

“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… We cannot become a breeding ground for global fraudsters, even if they use blockchain or anything else,” Abazovic told media.

Milan Knezevic, one of the leaders of the pro-Serbian For the Future of Montenegro political coalition, also called on the prosecution to investigate the case, claiming that Do Kwon financed Europe Now’s campaign for last year’s local elections and the presidential elections in April.

“The prosecution should inform the public about this letter. Serious doubts are being cast on the electoral process and we want to get to the end of the elections without such scandals,” Knezevic told media.

Spajic denied these claims, saying on Monday that he reported Do Kwon to the Interior Ministry soon as the South Korean arrived in Montenegro.

“Do Kwon is a fraudster who defrauded millions of people, including my friends and the company I worked for when we invested in this project in early 2018. Which is why we had the special satisfaction of reporting him to authorities,” Spajic said.

But on Tuesday, Abazovic claimed that Spajic didn’t inform the Interior Ministry about Do Kwon’s presence in Montenegro.

As finance minister, Spajic promoted the development of the blockchain industry in Montenegro. Last April, Montenegrin citizenship was granted to Vitalik Buterin, co-founder of cryptocurrency company Ethereum.

On May 15, Buterin and Spajic promoted a cryptocurrency conference in the coastal resort of Lustica Bay, arguing that Montenegro should become a centre for the blockchain industry.

The authorities in South Korea had been searching for Do Kwon after his multi-billion-dollar crypto enterprise collapsed in May last year.

On March 23, Do Kwon and Han Chang-Joon, a senior executive at mobile payment provider Chai, were arrested in Podgorica for allegedly attempting to travel with falsified documents.

Since Do Kwon’s arrest, both South Korea and the US have been requesting his extradition to face criminal charges following his trial in Montenegro.

On June 2, the Basic Court in Podgorica accepted Do Kwon and Han Chang-Joon’s application for bail in the sum of 400,000 euros each but ordered them to stay in their lawyer’s apartment in Podgorica until the end of their trial.