Terraform Labs announced on 28/03 the opening date of the Crypto Loss Claims Portal.
When this occurs, creditors can submit claims for losses arising from the collapse of the Terra USD token.
When will Terra's crypto claims portal open? Important details to note
According to the announcement, the Crypto Loss Claims Portal will officially open on Monday, 31/03/2025. To submit a claim, creditors must register in advance on the online information portal. The application deadline is set for 30/04/2025, at 11:59 PM Eastern Time.
Proof of ownership is a mandatory requirement, and this varies depending on where individual creditors hold their assets. Those holding assets on the Terra ecosystem or other supported networks must sign a transaction with their wallet directly through the information portal. Notably, this process involves no fees.
Terra encourages creditors with assets on other platforms or exchanges to provide read-only API keys, which is the most reliable form of verification. Additionally, they also accept manual evidence such as transaction logs, account statements, or screenshots.
However, claims based solely on manual evidence may experience prolonged review and could potentially be rejected.
After verifying ownership, creditors must complete the Crypto Loss Claims Form on the information portal. They must ensure full disclosure of all details related to purchase, holding, and any associated transactions—including selling, swapping, or staking.
Claims submitted after the 30/04 deadline will not be considered. Missing the deadline will result in potential loss of recovery rights.
"For support, contact Kroll Restructuring Administration at Terraforminfo@ra.kroll.com," Terra stated.
In a subsequent Medium post, Terra indicated that additional details about the claims process will be available when the information portal launches. This includes the Crypto Loss Claims Procedure and a list of eligible cryptocurrencies.
Precedent for investor protection and corporate accountability
The establishment of the Crypto Loss Claims Portal follows a series of legal and financial developments surrounding Terraform Labs. About six months ago, the company reached a settlement with the US SEC (Securities and Exchange Commission) for $4.47 billion regarding securities fraud allegations.
This settlement addresses accusations that Terraform Labs misled investors about the stability of its digital assets, particularly TerraUSD. Part of the settlement fund will be used to compensate affected investors and enhance regulatory oversight in the cryptocurrency sector.
Before settling with the SEC, Terraform Labs filed for bankruptcy, initiating a structured dissolution of its operations. Currently, the claims process is a crucial part of these proceedings, serving as a mechanism for creditors to seek compensation for their financial losses.
As these developments continue, Terraform Labs co-founder Do Kwon was extradited to the US in December 2024. He faces multiple fraud allegations related to the collapse of TerraUSD and Luna. Kwon's arrest occurred in Montenegro in March 2023 while attempting to travel with forged documents.
The Terraform Labs case continues to shape the regulatory landscape for digital assets. Similar to the broader legal actions against the company, resolving these claims is likely to establish important precedents for investor protection, corporate accountability, and the evolving legal framework of cryptocurrency regulation.
Terra (LUNA) price performance. Source: CoinGeckoDespite this news, Terra Luna's price has dropped nearly 8% in the past 24 hours, trading at $0.1987 at the time of writing. Similarly, Terra Luna Classic's price has declined nearly 6% in the past 24 hours. At the time of writing, LUNC is trading at $0.00006253 on CoinGecko.
