Terraform Labs announced on March 28 the open date for its Crypto Loss Claims Portal.
Once this happens, creditors can submit claims for losses incurred following the collapse of the Terra USD token.
When Will Terra’s Crypto Claims Portal Open? Key Details To Note
According to the announcement, the Crypto Loss Claims Portal will officially open on Monday, March 31, 2025. To file a claim, creditors must first register on the online portal. The submission deadline is set for April 30, 2025, at 11:59 p.m. Eastern Time.
Proof of ownership is a requirement, which varies depending on where individual creditors kept their holdings. Those who held assets on the Terra ecosystem or other supported networks must sign a transaction with their wallet directly through the portal. Noteworthy, this process does not involve any fees.
Terra urged creditors with holdings on other platforms or exchanges to provide a read-only API key, which is the most reliable verification form. Alternatively, it allows manual evidence such as transaction logs, account statements, or screenshots.
However, claims based solely on manual evidence could see prolonged review and may also be disallowed.
Once proof of ownership is established, creditors must complete the Crypto Loss Claim Form on the portal. They must ensure 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. Failure to meet the deadline will result in the forfeiture of any potential recovery.
“For assistance, contact Kroll Restructuring Administration at [email protected],” Terra stated.
In a follow-up medium post, Terra said the portal’s additional details regarding the claims process would be available upon its launch. Among them include the Crypto Loss Claim Procedures and the list of eligible cryptocurrencies.
Precedents for Investor Protection and Corporate Accountability
Establishing 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 US SEC (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 SEC settlement, Terraform Labs filed for bankruptcy, initiating a structured wind-down of its operations. Currently under implementation, 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.
Despite this news, Terra Luna’s price is down by almost 8% in the last 24 hours, trading for $0.1987 as of this writing. In the same tone, Terra Luna Classic price is down by almost 6% in the last 24 hours. As of this writing, LUNC was trading for $0.00006253 on CoinGecko.
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