Terraform Labs has announced the launch of a platform for creditors impacted by the TerraUSD collapse to file claims for their losses.
Terraform Labs Loss Claims Portal
Terraform Labs is set to open a portal for claims related to the crash of the TerraUSD token. Operated by Kroll Restructuring Administration, the portal will be accessible from March 31, 2025. To submit a claim, creditors must sign up on the portal and upload documents proving ownership of the received assets. Claims submissions will remain open until April 30, 2025. There will be no fees for transaction submissions. Holdings on other trading platforms will require a read-only API key or evidence such as transaction history. Excluded assets, such as Luna 2.0, will not be claimable.
Terraform Labs Settles Lawsuit
Facing legal challenges, Terraform Labs settled a fraud claim with the SEC that resulted in $40 billion losses. The settlement requires Terraform Labs to provide $4.47 billion to cover investor losses in TerraUSD. Other assets, including PYTH tokens, will also be utilized. Once claims are settled and creditors are compensated, remaining assets will pay SEC penalties.
Do Kwon’s Legal Battle
Terraform Labs co-founder Do Kwon is facing increasing legal issues due to the TerraUSD collapse. Montenegro's Constitutional Court recently rejected his appeal against extradition to the US. This decision is seen as progress in the case. Analysts predict Montenegro will extradite Kwon to the US due to additional charges related to TerraUSD.
The launch of the claims portal by Terraform Labs marks a step in resolving the aftermath of the TerraUSD collapse, while Do Kwon's legal issues continue to evolve.
