Terraform Labs Creditors Can File Crypto Loss Claims from March 31
Terraform Labs (TFL), the company behind the collapsed stablecoin TerraUSD (UST), announced on Friday that its Crypto Loss Claims Portal will open on Monday, March 31, 2025.
This move represents the company’s efforts to manage creditor claims following the dramatic UST failure in 2022, which wiped out billions and drove Terraform into bankruptcy proceedings.
Further, the portal, run through restructuring firm Kroll Restructuring Administration, will allow creditors impacted by the UST collapse to submit claims. All creditors must submit their claims electronically through the official online portal.
Manual Evidence Could Slow Claim Review
Additionally, creditors face a strict submission deadline. All claims must be filed by April 30, 2025, at 11:59 p.m. ET. Claims submitted after this deadline will not be accepted. Those who fail to submit will lose any chance at potential recovery.
Meanwhile, eligible cryptocurrencies for loss claims are clearly specified. Certain assets are excluded, including those with minimal on-chain liquidity and holdings like Luna 2.0. The list of eligible cryptocurrencies will be available on March 31.
Also, creditors must provide proof of ownership using read-only API keys or signed blockchain transactions. Manual evidence like transaction logs and screenshots is allowed. However, TFL warns that this will slow the review process and risk claim denial.
How Terraform Will Verify Crypto Loss Claims
Terraform’s Wind Down Trust will verify claims. Under the process, claimants receive an initial determination or review notice within 90 days. Eligible creditors get pro rata distributions.
Notably, Terraform Labs’ stablecoin TerraUSD collapsed in May 2022 when its algorithmic peg to the US dollar failed spectacularly, causing massive losses across crypto markets.
The event triggered intense regulatory scrutiny. Numerous lawsuits followed. Eventually, Terraform filed for bankruptcy. The portal launch marks a major step toward resolution for the thousands impacted by one of crypto’s most notorious failures.
