Key Details of the Claims Portal Opening
Terraform Labs, the company behind the now-defunct Luna token and the TerraUSD stablecoin, is set to launch a claims portal on March 31, enabling investors to submit claims for their crypto losses linked to the firm’s downfall and subsequent bankruptcy proceedings.
How to File a Claim
The online claims system, managed by the claims administrator Kroll, is an integral component of the court-supervised winding down process for Terraform Labs. Investors have until April 30 at 11:59 p.m. ET to file their claims via the official site at claims.terra.money. It is crucial for claimants to adhere to this deadline, as any late submissions will be disregarded, meaning that those who miss the cut-off will lose their opportunity for potential recovery.
Eligibility Criteria for Claims
To qualify for a claim, investors must have holdings in specific cryptocurrencies detailed in the case documents at the time of the Terra ecosystem’s collapse. It is important to note that assets with an on-chain liquidity of less than $100, as well as certain cryptocurrencies like Terra 2.0’s Luna, are excluded from eligibility.
Proving Ownership
Claimants are required to provide evidence of ownership for their assets. The most reliable method recommended is to use read-only API keys from cryptocurrency exchanges, as these are deemed more trustworthy than screenshots or manually uploaded documents. It is essential for claimants to be aware that those submitting manual evidence may experience longer review times or even face the possibility of their claims being denied.
Claim Review Process and Timeline
After claims are submitted, they will undergo a thorough review and verification process. Claimants can expect to receive initial decisions within 90 days following the submission deadline. Those claims that are approved will be eligible for pro rata distributions once the processing is finalized.
The Impact of the Terra Ecosystem Collapse
The collapse of the Terra ecosystem in 2022 stands as a historic event in the cryptocurrency space, marking the largest wealth destruction in just three days. The market capitalization of LUNA plummeted from over $41 billion to a mere $6 million during this tumultuous period. This catastrophic decline has left many investors seeking redress through the upcoming claims portal.
