Terraform Labs Launches Online Claims Portal for Creditors to file for funds recovery
- Terraform Labs’ Crypto Loss Claims Portal opens on March 31, 2025, and closes on April 30, 2025.
- Creditors must submit proof of ownership; manual evidence may slow review or risk rejection.
Terraform Labs is finally giving creditors a way to recover their lost funds from the TerraUSD (UST) collapse. The company will be launching Crypto Loss Claims Portal, to administer the funds recovery process. The announcement came from a recent post in the TerraFormofficial X handle.
The crypto Loss Claims portal will be managed by Kroll Restructuring Administration, will be open from March 31, 2025, to April 30, 2025, allows creditors to submit their claims electronically
Creditors must submit their claims through the official portal at claims.terra.money before April 30, 2025, at 11:59 p.m. ET. Also, they need to provide proof of ownership, which depends on where they store the assets. If they store the funds on the Terra Ecosystem, they’ll only need to sign a transaction through the portal—no cost involved. But If creditors’ funds were on other platforms, they’ll have to submit extra documentation, a read-only API key or manual proof like transaction logs or account statements will be enough.
Terraform Labs further issues warnings to creditors that using manual proof instead of API keys could eventually lead to a prolonged process, and their claims might get rejected since there are other alternatives verification methods readily available.
Not all assets qualify for claims. It excludes crypto holdings with less than $100 in on-chain liquidity and Luna 2.0 tokens on Terra 2.0. The Plan Administrator will determine final claim amounts based on eligible holdings.
After the April 30 deadline, Terraform Labs’ Wind Down Trust will review submissions, and creditors will receive updates within 90 days. The firm expects to pay out approved claims on a pro-rata basis. Terraform Labs has stressed that missing the deadline means losing any chance of recovery.
Terraform’s Collapse and the SEC Settlement
Terraform Labs filed for bankruptcy after its collapse in May 2022 which triggered a $40 billion market crash. The failure of its algorithmic stablecoin TerraUSD(UST) led to multiple lawsuits and intense regulatory scrutiny by the SEC.
In September 2024, Terraform got the green light to wind down operations under a bankruptcy plan. As part of its settlement, it agreed to pay $4.47 billion in penalties. However, Terraform must first settle creditor claims before making any payments to the SEC. Assets belonging to Terraform’s co-founder, Do Kwon—including PYTH tokens—will also be used to cover some of these penalties.
The April 30, 2025, deadline marks a crucial moment for creditors seeking recovery. TerraForm’s community has been actively deliberate on this news. TerraForm’s official medium blog recently posted an urgent reminder to affected creditors and the community in general.
The company stated that the Crypto Loss Claims Portal will open for submission of claims on March 31, 2025, and creditors may file at claims.terra.money.
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Terraform Labs Launches Online Claims Portal for Creditors to file for funds recovery
- Terraform Labs’ Crypto Loss Claims Portal opens on March 31, 2025, and closes on April 30, 2025.
- Creditors must submit proof of ownership; manual evidence may slow review or risk rejection.
Terraform Labs is finally giving creditors a way to recover their lost funds from the TerraUSD (UST) collapse. The company will be launching Crypto Loss Claims Portal, to administer the funds recovery process. The announcement came from a recent post in the TerraFormofficial X handle.
The crypto Loss Claims portal will be managed by Kroll Restructuring Administration, will be open from March 31, 2025, to April 30, 2025, allows creditors to submit their claims electronically
Creditors must submit their claims through the official portal at claims.terra.money before April 30, 2025, at 11:59 p.m. ET. Also, they need to provide proof of ownership, which depends on where they store the assets. If they store the funds on the Terra Ecosystem, they’ll only need to sign a transaction through the portal—no cost involved. But If creditors’ funds were on other platforms, they’ll have to submit extra documentation, a read-only API key or manual proof like transaction logs or account statements will be enough.
Terraform Labs further issues warnings to creditors that using manual proof instead of API keys could eventually lead to a prolonged process, and their claims might get rejected since there are other alternatives verification methods readily available.
Not all assets qualify for claims. It excludes crypto holdings with less than $100 in on-chain liquidity and Luna 2.0 tokens on Terra 2.0. The Plan Administrator will determine final claim amounts based on eligible holdings.
After the April 30 deadline, Terraform Labs’ Wind Down Trust will review submissions, and creditors will receive updates within 90 days. The firm expects to pay out approved claims on a pro-rata basis. Terraform Labs has stressed that missing the deadline means losing any chance of recovery.
Terraform’s Collapse and the SEC Settlement
Terraform Labs filed for bankruptcy after its collapse in May 2022 which triggered a $40 billion market crash. The failure of its algorithmic stablecoin TerraUSD(UST) led to multiple lawsuits and intense regulatory scrutiny by the SEC.
In September 2024, Terraform got the green light to wind down operations under a bankruptcy plan. As part of its settlement, it agreed to pay $4.47 billion in penalties. However, Terraform must first settle creditor claims before making any payments to the SEC. Assets belonging to Terraform’s co-founder, Do Kwon—including PYTH tokens—will also be used to cover some of these penalties.
The April 30, 2025, deadline marks a crucial moment for creditors seeking recovery. TerraForm’s community has been actively deliberate on this news. TerraForm’s official medium blog recently posted an urgent reminder to affected creditors and the community in general.
The company stated that the Crypto Loss Claims Portal will open for submission of claims on March 31, 2025, and creditors may file at claims.terra.money.
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