Terraform Labs Will Launch Crypto Loss Claims Portal on 31/3/2025, Allowing Investors Affected by UST Collapse to Claim Compensation.
Terraform Labs will officially launch the Crypto Loss Claims Portal on March 31, 2025, to support investors affected by the collapse of terrausd (UST) and related cryptocurrencies in 2022. This is an important step in the company's bankruptcy asset liquidation process.
Claims Process Managed by Kroll
According to the announcement from Terraform Labs, the entire process will be managed by Kroll Restructuring Administration LLC – a company specializing in restructuring and bankruptcy management. Affected creditors and investors must submit claims before 11:59 PM (ET) on April 30, 2025. Those who do not meet this deadline will lose the right to receive any compensation.
It is important to note that claims will only include losses related to specific crypto assets directly affected by the UST collapse. However, Luna 2.0 tokens and on-chain liquid assets under $100 will not be eligible for compensation. The full list of eligible assets will be published on Kroll's restructuring portal when the process officially begins.
The verification process will prioritize more reliable types of evidence – called "Preferred Evidence". A typical example is read-only API keys from exchanges, which help expedite claim review. Conversely, claims using "Manual Evidence" such as screenshots or transaction logs may be significantly delayed in processing, or even rejected if the system determines the applicant could provide preferred evidence.
Kroll has warned that claims using manual evidence may require separate evaluation, making the decision-making process longer. After submission, applicants will receive preliminary results within 90 days after the deadline, or a notice of extended review. In case of disputes about the results, users can appeal through the process specified in the Crypto Loss Claims Terms.
Approved claims will be allocated pro-rata, subject to successful identity verification.
The collapse of the Terraform ecosystem in 2022 wiped out approximately $45 billion in market value, including $28 billion in DApps like Anchor. This event triggered a market-wide crypto decline of around $300 billion, leading to bankruptcies of companies like Celsius and Voyager, and prompting global regulators to tighten stablecoin controls.
