Terraform Labs to Launch Claims Portal to Begin Reimbursing Creditors

Terraform Labs has announced the imminent opening of the Crypto Loss Claims Portal, scheduled for March 31, 2025.

Notably, this portal is a crucial component of Terraform Labs’ settlement agreement with the U.S. Securities and Exchange Commission (SEC), initiating the process of reimbursing creditors who incurred losses following the collapse of the Terra ecosystem.

Terraform Labs Launch Claim Portal

Terraform Labs launched the claims portal after filing for Chapter 11 bankruptcy in the U.S. in January 2024. They reported assets and debts between $100 million and $500 million.

The Crypto Loss Claims Portal is scheduled to open for submission of Crypto Loss Claims on March 31, 2025. Creditors may file Eligible Crypto Loss Claims at http://claims.terra.money. The deadline to file is April 30, 2025 at 11:59 p.m. (prevailing Eastern Time),” Terraform Labs addressed.

Furthermore, the firm noted that to start a claim, one must sign up on the claims website, http://claims.terra.money. After signing up, one must prove that one owned the affected crypto assets with wallet addresses or API keys that allow viewing only.

Nonetheless, the firm advises creditors to carefully check the website’s Crypto Loss Claim Procedures to ensure they meet all the rules.

“Claim amounts will be based on how much Eligible Loss Cryptocurrency you held,” the announcement stated.

Notably, some crypto assets are not eligible for claims. These include crypto assets with low on-chain liquidity (under $100) and specific holdings like Luna 2.0 on Terra 2.0.

Previous Settlement with SEC

LUNA, created by Terraform Labs, was involved in one of the most significant failures in the crypto world. In April 2024, a court found Terraform and its founder, Do Kwon, guilty of fraud and selling securities without registering them. The court told them to pay $4.5 billion to those who were harmed.

The SEC claimed that Terraform Labs and Do Kwon misled investors about TerraUSD’s ability to stay at $1. They said that in May 2021, when TerraUSD first fell below $1, Kwon and Terraform secretly arranged for someone else to buy a lot of TerraUSD to bring it back to $1. At the same time, they publicly said the recovery happened because the algorithm worked well.

Furthermore, in September 2024, a U.S. bankruptcy court approved the company’s plan to end operations after a $4.47 billion settlement with the SEC. This settlement was for fraud related to the TerraUSD (UST) stablecoin collapse.

Meanwhile, Galaxy Digital, a crypto investment firm, has agreed to pay $200 million to the New York Attorney General’s Office (NYAG) for advertising the LUNA crypto while secretly selling a lot of it for money.