Terraform Labs to Open Claims Portal for Investors on March 31
Terraform Labs, the company responsible for the collapse of the Luna token and the TerraUSD stablecoin, has announced the opening of a claims portal on March 31 for investors to file for crypto losses related to the company’s bankruptcy. The online system, managed by claims administrator Kroll, is part of the company’s court-supervised wind-down process. Investors have until April 30 to submit claims through the claims.terra.money website. It is important to note that late submissions will not be considered, so it is crucial for investors to adhere to the deadline.
The claims must be linked to specific cryptocurrencies listed in the case documents and held during the period surrounding the collapse of the Terra ecosystem. Assets with less than $100 in on-chain liquidity and certain others, such as Terra 2.0’s Luna, will not be eligible for claims. Additionally, claimants are required to provide proof of ownership. The preferred method is read-only API keys from exchanges, as they are considered more reliable than screenshots or manually uploaded documents. Those using manual evidence may face longer review periods or risk having their claims denied.
Once the claims are submitted, they will be reviewed and verified. Initial decisions will be communicated within 90 days after the deadline, and approved claims will be eligible for pro rata distributions once the processing is complete. The collapse of the Terra ecosystem in 2022 resulted in the largest destruction of wealth in the history of the cryptocurrency space, with LUNA’s market capitalization plummeting from over $41 billion to $6 million in just three days.
In conclusion, investors who suffered losses due to the collapse of the Terra ecosystem have the opportunity to file claims for their crypto losses through the online portal. It is essential for investors to adhere to the deadline and provide the necessary documentation to support their claims. Once the claims are processed, eligible investors may receive compensation for their losses.
