Terraform Labs Opens Crypto Loss Claims Portal: How to File
The Crypto Loss Claims Portal, managed by Kroll Restructuring Administration, will be accessible starting March 31, 2025, through the website claims.terra.money. The portal will remain open for claims until April 30, 2025.
How to File a Claim
To submit a claim, creditors must register on the portal and upload documents proving legal ownership of the coins received from Terraform Labs platform. Submissions will be made electronically, with no fees for signing transactions related to the identified assets. Claims will only be accepted for assets that meet eligibility requirements, and excluded assets, such as Luna 2.0 in Terra 2.0 and any cryptocurrencies with an on-chain volume under $100, will not be eligible.
Creditors holding assets on other platforms will need to provide additional evidence, such as transaction history or account statements, or use a read-only API key for verification. The portal will provide initial decisions or notifications of further review within a 90-day period following the April 30 deadline. The claims will be reviewed based on the Eligible Loss Cryptocurrency score, and the Plan Administrator will decide on the distribution of benefits to creditors.
Terraform Labs SEC Settlement and Bankruptcy Process
Terraform Labs has been involved in legal challenges, including a fraud ruling by the U.S. Securities and Exchange Commission (SEC) in April, which led to significant losses for investors. As part of a settlement with the SEC, Terraform Labs is required to pay $4.47 billion to cover investor losses caused by the TerraUSD crash. The settlement also involves using other assets, including PYTH tokens owned by Terraform Labs co-founder, Do Kwon. These funds will be allocated to creditors before Terraform Labs uses remaining assets to pay the penalty to the SEC.
Do Kwons Legal Troubles Intensify
The legal issues for Terraform Labs co-founder Do Kwon continue to escalate following the collapse of TerraUSD in May 2022. The Constitutional Court of Montenegro recently rejected Kwons appeal to avoid extradition to the United States. This ruling significantly reduces the chances of Kwon seeking further delays in his extradition. Both the U.S. and South Korea have requested Kwons extradition, and analysts expect Montenegro to proceed with his extradition to face charges related to the TerraUSD collapse.
Kwons legal team is likely to continue challenging the extradition process, but legal experts anticipate that he will ultimately be sent to the U.S. to face additional charges stemming from the collapse of TerraUSD.
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