Terraform Labs, the firm behind the now-defunct Terra USD token, has announced the opening of a creditor claims portal on March 31, 2025, as part of its ongoing bankruptcy process.
This initiative aims to allow affected creditors to submit claims for losses incurred from investments in certain cryptocurrencies linked to the company’s downfall. The estimated repayment range for these claims is between $185 million and $442 million.
Terraform Labs Announces Crypto Loss Claims Portal
In a statement released on March 28, Terraform Labs Pte. Ltd. and Terraform Labs Limited, collectively referred to as the “Debtors,” outlined their plans to wind down operations.
The newly established Crypto Loss Claims submission process will enable creditors to file claims stemming from the dramatic collapse of the Terra USD token and subsequent events that led to the firm’s bankruptcy.
Terraform Labs’ Crypto Loss Claims Portal, managed by Kroll Restructuring Administration LLC, will be accessible starting March 31, 2025, at claims.terra.money. Creditors wishing to file claims must submit their Crypto Loss Claim Forms electronically through this portal, along with any supporting documentation.
All claims must be submitted by April 30, 2025, at 11:59 p.m. ET. Claims submitted after this deadline will be disqualified, and creditors failing to file in time will forfeit any potential recovery.
It is important to note that cryptocurrencies with on-chain liquidity of less than $100, as well as certain exclusions like Luna 2.0 holdings, are not eligible for claims.
Claims Review Timeline Explained
For holdings on other platforms, providing a read-only API key is recommended. Although manual evidence submissions are allowed, they may face longer review times and potential disqualification.
Once registered, creditors must complete the Crypto Loss Claim Form, detailing purchases, holdings, and any relevant actions taken with the eligible cryptocurrencies. It is crucial to ensure that claims are submitted by the April 30, 2025 deadline.
After submission, Terraform Labs’ claims will be reviewed by the Wind Down Trust. Within 90 days following the claim bar date, creditors will be notified through the Online Portal regarding the initial determination of their claim amounts.
Creditors will have the opportunity to accept or dispute these determinations. Undisputed claims will be eligible for initial disbursements as soon as feasible, with distributions made on a pro rata basis.
At the time of writing, the Luna token, now rebranded as Luna Classic (LUNC), is trading at $0.00005928 and is down 12% on a monthly time frame. However, on longer time frames, the token is down 61% year-to-date.
These declines result in a 100% drop from the cryptocurrency’s all-time high of $119, which was reached during the last bull run just before its dramatic collapse.
Featured image from DALL-E, chart from TradingView.com
