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Bankruptcy Court Approves $1.3B Terraform Labs Settlement with 3AC
ByAinvest
Tuesday, Oct 7, 2025 8:14 pm ET1min read
A bankruptcy court in the US has approved a $1.3 billion settlement between Terraform Labs and Three Arrows Capital (3AC) regarding a claim tied to the 2022 collapse of the Terra/LUNA cryptocurrency. The court classified 3AC's losses as a "Crypto Loss Claim," a special type of claim for investors who lost digital assets within the Terra ecosystem, rather than as general unsecured debt. This classification places 3AC in the same category as other crypto investors who lost money when UST, Terra's algorithmic stablecoin, and its token LUNA crashed in 2022.
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