Terraform Labs to Open Crypto Loss Claims Portal on March 31

Terraform Labs, the company that created the cryptocurrency LUNA and the stablecoin TerraUSD (UST), is launching a portal for people to file claims for their losses starting on March 31. 

The portal is designed for anyone who lost at least $100 when the Terra ecosystem collapsed in 2022. The claims must be submitted by 11:59 pm ET on April 30, and if you lost less than $100, your claim won’t be accepted.

To file a claim, victims will need to show proof of their loss. There are two types of evidence that can be submitted. One is called “manual evidence,” which includes things like transaction logs, account statements, and screenshots. The other is called “preferred evidence,” which is better and includes read-only API keys. 

Terraform Labs has warned that claims with manual evidence could take a long time to process and might be rejected if preferred evidence is available.

Terraform Labs says it expects to reimburse between $184.5 million and $442.2 million to people who were affected by the crash, but the total amount they will pay out is still hard to figure out. 

The company’s decision to launch this claims portal comes after a Delaware court approved its bankruptcy plan, which allows Terraform Labs to close down its operations and avoid going through more legal battles with investors.

In June 2024, Terraform Labs reached a settlement with the U.S. Securities and Exchange Commission (SEC) and agreed to pay $4.47 billion to settle the charges. After the collapse of the Terra ecosystem, Terraform Labs decided to stop its operations and hand over control of the Terra blockchain to the community. The company also sold off some of its important assets and burned some of its holdings to try to prevent further damage.

Before it collapsed, Terraform Labs ran a $45 billion ecosystem with its stablecoin TerraUSD (UST) and the LUNA token. After the crash, Terraform Labs founder Do Kwon was arrested in Montenegro and sent to the U.S. to face criminal charges. His court hearing has been delayed until April 10 as prosecutors look at new evidence.