Terraform Labs has officially launched its Crypto Loss Claims Portal, allowing investors who suffered losses in the 2022 TerraUSD crash to apply for compensation.
How to File a Claim
Kroll Restructuring Administration LLC, a New York-based firm, will handle the claim process. Investors must submit their claims by April 30, 2025 to be eligible for reimbursement. Failure to file by the deadline will result in forfeiting the right to compensation.
Requirements for Filing:
- Proof of Losses: Investors must provide transaction records of Terra-based cryptocurrencies sold at a loss after May 2022.
- Wallet Addresses: Submitting addresses where Terra assets were held before the crash.
- Preferred Evidence: Kroll prioritizes read-only API keys from exchanges for faster processing.
- Manual Evidence: Screenshots or transaction logs may require longer review times and could face rejection if superior proof is available.
Once a claim is submitted, an initial1 response will be provided within 90 days. Some cases may need further review. Approved claims will be compensated on a pro-rata basis, and identity verification is mandatory before funds are disbursed.
A list of eligible cryptocurrencies will be available on Kroll’s restructuring portal. However, Luna 2.0 and tokens with under $100 in liquidity will not qualify.
Terraform Labs & Do Kwon Ordered to Pay $4.5 Billion
The 2022 TerraUSD collapse triggered losses amounting to $45 billion, affecting major projects like Anchor, which alone lost $28 billion. The event wiped out nearly $300 billion from the crypto market, leading to bankruptcies of firms like Celsius and Voyager and heightened global scrutiny on stablecoins.
In a legal settlement, Terraform Labs and its ex-CEO, Do Kwon, have been ordered to pay $4.5 billion for misleading investors about Terra’s stability before its collapse. The penalties include:
- $4.5 billion in restitution for illegal gains
- $420 million SEC fine
- $204 million personal penalty for Do Kwon
- Ban on crypto securities dealings
The settlement awaits approval from Judge Jed Rakoff of the U.S. District Court in New York.
Do Kwon’s Legal Trouble – Will Trump Pardon Him?
Do Kwon was arrested in Montenegro in 2023 for using a fake passport. After serving four months in prison, he was released, but both the U.S. and South Korea are seeking his extradition on fraud charges.
A hot topic in the crypto community is whether Donald Trump will pardon Do Kwon if he returns to office. Trump has granted clemency to cryptocurrency figures before, raising speculation. A pardon could restore some investor trust in Terraform Labs and influence regulatory approaches to digital finance firms.
Final Thoughts: Act Before the Deadline
The launch of Terraform Labs’ claims portal marks a critical step in its bankruptcy resolution. Investors should file their claims promptly before April 30, 2025, to secure compensation.
Stay updated for further developments!
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