Terraform Labs opens the claims portal for Terrausd victims

Terraform Labs has announced that the cryptographic losses claims portal will open on March 31, 2025, allowing affected investors to seek compensation for losses linked to the collapse of Token Terra Terra Usd (UST).

The company, which is decreasing operations after bankruptcy, declared that creditors must present claims before April 30, 2025 to be considered for possible recovery.

Eligibility criteria and procedures after presentation

According to a blog mailThe creditors must register in the portal administered by Kroll and provide proof of property to submit their requests. For holdings in the Terra ecosystem or compatible networks, users must sign a transaction through it at no cost.

Those with assets are encouraged on other platforms that send an API key to only reading. Manual evidence can also be accepted, such as transaction records and account states, but this could lead to prolonged review periods.

The plan administrator will determine the value of applications based on the eligible loss of cryptography holdings. However, not all assets qualify. Cryptocurrencies with liquidity are excluded in the chain below $ 100 and specific holdings such as Luna 2.0 in Terra 2.0. Claims filed with manual evidence can also be rejected if preferred verification methods are available but are not used.

Once filed, accounts receivable will be reviewed by Wind Down Trust. Within 90 days after the deadline of April 30, creditors will receive a notification of the portal detailing their shipping status. Then they can accept or dispute the findings, with approved amounts distributed in a preliminary way shortly after.

Collapse of UST and legal problems

Stablcoin de Terrafting Labs, UST, collapsed in May 2022 after its algorithmic plug to the US dollar failed, which resulted in an estimated $ 40 billion in losses throughout the cryptography market.

The incident led to multiple demands and investigations, and the company finally declared bankruptcy in January 2024. In September of that year, a court approved the Plan of the Stablecoin issuer to reduce its operations as part of its bankruptcy procedures.

It also reached an agreement with the US stock and values ​​commission. UU. (SEC), agreeing to pay $ 4.47 billion on the rise and sanctions. This followed a previous decision that found the firm and its co -founder, Do Kwon, guilty of fraud.

To fulfill these obligations, Terraform Labs will use assets held by Kwon, including pyth tokens and other holdings. However, the agreement also requires that pay payments be made only after the claims of the creditors are addressed through the company’s settlement process.