Terraform Labs is opening a claims portal for victims of the TerraUSD collapse, offering a chance for creditors to recover their losses after the company’s bankruptcy, the company announced on Friday.
The Crypto Loss Claims Portal opens on March 31, 2025, at claims.terra.money. Creditors have until April 30, 2025, at 11:59 p.m. ET to submit their claims and documents online.
Eligibility Criteria
To file a claim, creditors need to register on the portal and show proof of ownership. For eligible crypto assets on the Terra Ecosystem or supported networks, users must sign a free transaction through the portal. For assets on other platforms, creditors are recommended to provide a read-only API key or submit manual proof like transaction logs and account statements.
The Plan Administrator will decide claim amounts based on eligible loss cryptocurrency holdings. However, assets with on-chain liquidity under $100 and certain holdings, like Luna 2.0 on Terra 2.0, are not eligible for claims. Creditors are advised to refer to the Crypto Loss Claim Procedures for complete details. Notably, Claims with manual evidence will take longer to review and may be denied if preferred evidence (like API keys) is available but not provided.
Post-filing Process
After submitting a claim, the Wind Down Trust will review and verify it. Within 90 days of the claim deadline, creditors will receive a notification through the portal with either their claim amount or an update that more time is needed for review. Creditors can accept or dispute the decision. Undisputed claims will be eligible for payments, which will be distributed pro rata as soon as possible.
In September, Terraform Labs got court approval to begin winding down under its bankruptcy plan after settling a lawsuit with the SEC. The company will pay $4.47 billion as part of the settlement after being found guilty of fraud in April, which resulted in $40 billion in investor losses.
Co-founder Do Kwon’s assets, including PYTH tokens, will be used to help cover the penalties. Payments to the SEC will be made only after claims from Terraform’s liquidation process are settled.
