Claims Portal Opens for Terra Investors Affected by Collapse
Terraform Labs, the company responsible for the failed Luna token and the TerraUSD stablecoin, is set to launch an online portal on March 31, allowing affected investors to file claims for their cryptocurrency losses stemming from the company’s dramatic downfall and subsequent bankruptcy proceedings. This initiative is part of the court-supervised process designed to wind down the company’s operations effectively.
The claims portal, managed by the claims administrator Kroll, will be open for submissions until April 30 at 11:59 p.m. ET. Investors are encouraged to visit claims.terra.money to file their claims. It is crucial for investors to be aware that late submissions will not be considered, which means that anyone missing this deadline will forfeit their right to any potential recovery, as stated in a recent Medium post.
To be eligible for claims, losses must be associated with specific cryptocurrencies outlined in the case documents and held during the critical period surrounding the collapse of the Terra ecosystem. Importantly, assets with less than $100 in on-chain liquidity, along with certain others—including Terra 2.0’s Luna—are excluded from eligibility.
Claimants will also need to provide proof of ownership to substantiate their claims. The preferred method for submitting this proof is via read-only API keys from exchanges, which are deemed more reliable by the administrator compared to screenshots or manually uploaded documents. Individuals relying on manual evidence may face longer review periods and risk having their claims denied altogether.
Once submitted, the claims will undergo a thorough review and verification process. Initial decisions regarding claims will be communicated within 90 days following the submission deadline, and approved claims will be eligible for pro-rata distributions once the processing is complete.
The Terra ecosystem experienced a catastrophic collapse in 2022, resulting in the most significant wealth destruction in a mere three days in the history of the cryptocurrency market. During this tumultuous period, LUNA’s market capitalization plummeted from over $41 billion to just $6 million.
