Terraform Labs Opens Crypto Claims Portal for Terra USD Losses
2min read Terraform Labs has announced the opening date for its Crypto Claims Portal, which will allow creditors to submit claims for losses incurred following the collapse of the Terra USD token. The portal is set to open on March 31, 2025, and creditors will have until April 30, 2025, at 11:59 p.m. Eastern Time to file their claims. To register, creditors must first sign up on the online portal and provide proof of ownership, which varies depending on where their holdings were kept. Those who held assets on the Terra ecosystem or other supported networks must sign a transaction with their wallet directly through the portal, while those with holdings on other platforms or exchanges are required to provide a read-only API key or manual evidence such as transaction logs, account statements, or screenshots. However, claims based solely on manual evidence may face prolonged review and potential disallowance.
Once proof of ownership is established, creditors must complete the Crypto Loss Claim Form on the portal, ensuring full disclosure of all details related to purchases, holdings, and any associated transactions, including sales, swaps, or staking. Late claims beyond the April 30 submission deadline will not be considered, and failure to meet the deadline will result in the forfeiture of any potential recovery. For assistance, creditors can contact Kroll Restructuring Administration. In a follow-up post, Terraform Labs stated that additional details regarding the claims process, including the Crypto Loss Claim Procedures and the list of eligible cryptocurrencies, would be available upon the portal's launch.
Ask Aime: What steps should I take if I want to file a claim for losses from the Terra ecosystem collapse?
The establishment of the Crypto Loss Claims Portal follows a series of legal and financial developments surrounding Terraform Labs. Nearly six months ago, the company settled with the Securities and Exchange Commission for $4.47 billion over allegations of securities fraud. The settlement addressed accusations that Terraform Labs misled investors about the stability of its digital assets, particularly TerraUSD. A portion of the settlement funds goes toward compensating affected investors and bolstering regulatory oversight within the cryptocurrency sector. In the run-up to the settlement, Terraform Labs filed for bankruptcy, initiating a structured wind-down of its operations. The claims process is a key component of these proceedings, serving as a means for creditors to seek restitution for their financial losses.
As these developments unfold, Terraform Labs co-founder Do Kwon was extradited to the United States in December 2024. He faces multiple fraud charges related to the collapse of TerraUSD and Luna. Kwon’s arrest took place in Montenegro in March 2023 while attempting to travel with falsified documents. The Terraform Labs case continues to shape the regulatory playing field for digital assets. Like the broader legal actions against the company, the resolution of these claims will likely set significant precedents for investor protection, corporate accountability, and the growing framework of crypto regulations.
In summary, the opening of the Crypto Claims Portal by Terraform Labs marks a significant step in the process of addressing the financial losses incurred by creditors following the collapse of the Terra USD token. The portal provides a structured means for creditors to submit their claims and seek restitution, with a clear timeline and requirements for proof of ownership and disclosure of details. The developments surrounding Terraform Labs, including the SEC settlement and the extradition of Do Kwon, highlight the ongoing efforts to hold the company accountable and establish precedents for investor protection and corporate accountability in the cryptocurrency sector.
