Terraform Labs Opens Claims Portal for Creditors to Recover Losses

Terraform Labs has launched a claims portal for creditors affected by the collapse of the TerraUSD token, providing them with an opportunity to recover their losses following the company's bankruptcy. The Crypto Loss Claims Portal will open on March 31, 2025, at claims.terra.money, and creditors have until April 30, 2025, at 11:59 p.m. ET to submit their claims and supporting documents online.

To file a claim, creditors must register on the portal and provide proof of ownership. For eligible crypto assets held on the Terra Ecosystem or supported networks, users need to sign a free transaction through the portal. For assets on other platforms, creditors are advised to provide a read-only API key or submit manual proof such as transaction logs and account statements. The Plan Administrator will determine claim amounts based on eligible loss cryptocurrency holdings. However, assets with on-chain liquidity below $100 and certain holdings, like Luna 2.0 on Terra 2.0, are not eligible for claims. Creditors are urged to refer to the Crypto Loss Claim Procedures for comprehensive details. Claims with manual evidence may take longer to review and could be denied if preferred evidence, such as API keys, is available but not provided.

After submitting a claim, the Wind Down Trust will review and verify it. Within 90 days of the claim deadline, creditors will receive a notification through the portal with either their claim amount or an update indicating that more time is needed for review. Creditors can accept or dispute the decision. Undisputed claims will be eligible for payments, which will be distributed pro rata as soon as possible.

In September, Terraform Labs received court approval to begin winding down under its bankruptcy plan after settling a lawsuit with the SEC. The company will pay $4.47 billion as part of the settlement, following a fraud conviction in April that resulted in $40 billion in investor losses. Co-founder Do Kwon’s assets, including PYTH tokens, will be used to help cover the penalties. Payments to the SEC will be made only after claims from Terraform’s liquidation process are settled.

This development represents a crucial step in the bankruptcy proceedings of Terraform Labs, offering creditors a structured process to recover their losses. The claims portal is designed to be user-friendly, with clear instructions and support available through the portal. Creditors are encouraged to take advantage of this opportunity to submit their claims accurately and on time, ensuring they have the best chance of recovering their losses.