Investors Can Submit Claims Starting March 31, 2025
Terraform Labs, the company behind the now-defunct TerraUSD (UST) stablecoin, has announced the opening of its Crypto Loss Claims Portal, beginning March 31, 2025. This initiative aims to reimburse investors impacted by the dramatic $45 billion crash of the Terra ecosystem in May 2022.
How to Submit a Claim
Investors seeking compensation must submit their claims no later than April 30, 2025, at 11:59 PM Eastern Time. Here’s what the process involves:
- Registration Required: Users must create an account on the portal to begin the claims process.
- Proof of Ownership: Claimants must verify their crypto holdings. The method depends on where assets were held:
- Terra Ecosystem or Supported Chains: Users must sign a transaction via the portal (no fees involved).
- Other Platforms: Submitting a read-only API key is preferred for verification.
- Manual Submissions: Transaction logs or account statements may be accepted but may delay reviews and increase the risk of disqualification if better evidence is available.
Eligibility Criteria and Exclusions
Not all crypto assets qualify for reimbursement. The claims process excludes:
- Cryptocurrencies with on-chain liquidity below $100.
- Luna 2.0 holdings on Terra 2.0.
The value of each claim will be determined based on eligible holdings. Claims that don’t meet the platform’s criteria may be rejected or adjusted during the review.
Review Process and Estimated Payouts
After the April 30 deadline, the Wind Down Trust will review submitted claims and respond within 90 days. Approved claimants will be notified and given the opportunity to accept or contest the findings.
- Payouts: Approved claims will be distributed on a pro-rata basis.
- Estimated Total Reimbursements: Terraform Labs estimates payouts could fall between $184.5 million and $442.2 million, depending on the number and size of valid claims.
The Bigger Picture: A Cautionary Tale in Crypto
The TerraUSD collapse in May 2022 marked one of the most catastrophic failures in the history of decentralized finance. It triggered widespread losses and regulatory scrutiny.
- In June 2024, Terraform Labs settled with the U.S. Securities and Exchange Commission (SEC) for $4.47 billion.
- The company later announced its shutdown, transferring control of the Terra blockchain to its community.
- Terraform founder Do Kwon was arrested in Montenegro and extradited to the U.S., where he now faces multiple felony charges.
Investors impacted by the TerraUSD crash are strongly encouraged to gather all relevant documentation and submit their claims as early as possible to avoid delays or disqualification.
