Terraform Labs Launches Claims Portal For UST Crash Victims
By: Eva Baxter
Terraform Labs, the company associated with the TerraUSD (UST) stablecoin, has initiated a crypto claims portal aimed at reimbursing individuals impacted by the collapse of the Terra ecosystem in May 2022. The claims process, which runs from March 31, 2025, to April 30, 2025, is designed to assist those who suffered losses of at least $100 due to the dramatic fall in UST value. The platform intends to efficiently manage the claims through a Wind Down Trust, which will handle the assessment during the company’s ongoing bankruptcy proceedings.
The claims process requires creditors to substantiate their asset ownership by providing relevant information like wallet addresses, read-only API keys, and corresponding documentation. However, not all crypto assets will be considered for compensation. Specifically, those holdings with an on-chain liquidity under $100 and particular tokens such as Luna 2.0 from the Terra 2.0 blockchain are excluded from the claims process. Claimants will receive an initial determination of their claim amounts within 90 days of the submission deadline. In the absence of contestation, payments will ensue promptly and will be allocated on a pro-rata basis.
In tandem with this development, Terraform Labs had to navigate through legal challenges, having filed for Chapter 11 bankruptcy back in January 2024. This followed their settlement with the SEC, whereby a $4.47 billion agreement was reached over charges linked to the UST crash. Besides, Galaxy Digital, another entity embroiled in the Terra incident, reached a $200 million settlement with the New York Attorney General, addressing claims of misleading investors while promoting and offloading the LUNA token.
As the claims process advances, Terraform Labs admonishes creditors to review official guidelines on their claims portal to ensure compliance with submission requirements. The rationale behind this structured approach is to deliver an equitable resolution, mitigating further disputes. The wider crypto community continues to reflect on the implications of such precedents as investors adjust to the changing landscape of regulatory and operational frameworks.
