Preface

Terraform Labs, the entity behind the failed Luna token and TerraUSD stablecoin, has announced the opening of a claims portal on March 31. This step allows investors to file for crypto losses linked to the company's collapse and subsequent bankruptcy. Managed by Kroll, the court-supervised portal is a crucial part of the wind-down process. Eligible claims are connected to certain cryptocurrencies during the ecosystem's breakdown.

Lazy bag

Terraform's claims portal opens March 31, crucial for investor recovery. Submit by April 30 with proof. Non-compliance risks claim denial.

Main Body

Terraform Labs, known for the dramatic failure of its Luna token and TerraUSD stablecoin, is set to launch a portal specifically designed for affected investors. The aim is to facilitate the submission of claims related to the extensive crypto losses experienced when the company spiraled into bankruptcy. As of March 31, investors can access this portal, which is a significant component of a court-monitored liquidation process administered by Kroll. The deadline for claims submission is firmly set for April 30 at 11:59 p.m. ET. Failing to submit by this date results in losing the opportunity for compensation.

Claims should relate to the specific cryptocurrencies delineated in the case documentations, and should have been in possession during the turmoil of the Terra ecosystem's collapse. Assets with minimal on-chain liquidity, such as certain Terra derivatives, Luna from Terra 2.0 being one of them, do not meet the requirements for claims. Investors are also expected to provide irrefutable proof of ownership of the digital assets. The most acceptable form of this proof is through read-only API keys from trusted exchanges, which the administrator finds more credible than screenshots or manually provided documentation. Those who present manual proof could face lengthy verification processes or outright claim rejections.

Once all claims are assembled, they will undergo a thorough review and verification process. Initial outcomes are set to be communicated within a 90-day window post-deadline, with accepted claims moving forward to share in proportional distributions once all processing is complete. The Terra ecosystem's downfall in 2022 led to a significant loss in market value, marking one of the most drastic wealth vaporization events in cryptocurrency's history. The market cap of LUNA plummeted from a staggering $41 billion to just $6 million within three days. In addition, Terraform Labs, along with Do Kwon, has consented to a settlement with the SEC, agreeing to pay a combined sum of $4.5B in a civil fraud matter.

Key Insights Table