Terraform Labs launches claims portal for creditors affected by TerraUSD collapse

Source Cryptopolitan

Terraform Labs is opening a platform for creditors who were impacted by the crash of the TerraUSD token to file for their losses as the firm continues with the bankruptcy process. The Kroll Restructuring Administration will operate the Crypto Loss Claims Portal, which will be accessible on March 31, 2025, through claims.terra.money.

Submissions to the portal will remain open until April 30, 2025. To submit a claim, creditors must sign up on the portal and upload documents proving that they legally own the coins received from the platform.

Claims will be made electronically, and there will be no fees for signing transactions related to the identified assets. Other holdings across other trading platforms will require a read-only API key or evidence such as transaction history or account statements. The announcement further noted that excluded assets, such as Luna 2.0 in Terra 2.0 and any other cryptocurrency with an on-chain volume under $100, will not be available as a claim.

The claims portal will provide initial decisions or notifications of additional review within the 90-day time frame of the April 30th deadline. The Plan Administrator will consider the claims concerning the Eligible Loss Cryptocurrency score to determine the Plan benefits. Any lender must ensure that all necessary papers are submitted to avoid any rejections and delays.

Terraform Labs settles lawsuit

Terraform Labs faced legal challenges, such as a fraud ruling by the SEC in April, which led to losses of $40 billion to its investors. In its settlement with the SEC, Terraform Labs will be required to provide $4.47 billion, which will be used to cover losses incurred by investors in TerraUSD.

The settlement also entails employing other assets, such as PYTH tokens owned by Terraform Labs’ co-founder, Do Kwon. The SEC settlement will mean that creditor claims will form the basis of Terraform Labs as it seeks to liquidate. After the claims are adjusted and the payments are made to the creditors, the rest of the assets will help to pay the penalty given by the SEC.

Do Kwon’s legal battle escalates

Terraform Labs co-founder Do Kwon is experiencing increasing legal issues as a result of TerraUSD’s collapse in May 2022. The Constitutional Court of Montenegro has recently rejected an appeal that was filed by Do Kwon where he sought to be not extradited to the United States. This ruling has greatly reduced the chances Kwon can apply to seek another delay on his extradition.

Montenegro’s decision to uphold the ruling in favor of Kwon’s extradition is considered good progress in the case. Since both the US and South Korea have requested Kwon’s extradition, his lawyers will likely persist in trying to reinstate the move. Legal analysts expect that Montenegro will extradite Kwon to the US due to additional charges on the TerraUSD implosion.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Charlie Kirk’s Death Becomes a Crypto Flashpoint With ‘Justice’ TokensThe launch of new tokens following headline-making events is not new in the crypto market.
Author  Beincrypto
Sep 11, Thu
The launch of new tokens following headline-making events is not new in the crypto market.
placeholder
Solana Price Forecast: SOL eyes record highs as institutional demand, on-chain metrics underpin rallySolana (SOL) price trades in green, above $242 at the time of writing on Monday, after breaking out of a parallel channel last week with bulls aiming for record highs.
Author  FXStreet
Yesterday 05: 42
Solana (SOL) price trades in green, above $242 at the time of writing on Monday, after breaking out of a parallel channel last week with bulls aiming for record highs.
placeholder
Top 3 Price Prediction: BTC steadies, ETH finds support, XRP breaks bullish pattern Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) hover around key levels after recovering by nearly 4%, 7%, and 6%, respectively, last week.
Author  FXStreet
Yesterday 05: 44
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) hover around key levels after recovering by nearly 4%, 7%, and 6%, respectively, last week.
placeholder
Gold bulls not ready to give up yet amid Fed rate cut bets and geopolitical risksGold (XAU/USD) kicks off the new week on a softer note, though it manages to reverse an Asian session dip to the $3,627-3,626 area and currently trades near the top end of a one-week-old trading range.
Author  FXStreet
Yesterday 05: 47
Gold (XAU/USD) kicks off the new week on a softer note, though it manages to reverse an Asian session dip to the $3,627-3,626 area and currently trades near the top end of a one-week-old trading range.
placeholder
Forex Today: Big central bank week begins in a calm mannerMajor currency pairs trade in familiar ranges to start the week as investors gear up for key macroeconomic data releases and central bank meetings.
Author  FXStreet
Yesterday 07: 35
Major currency pairs trade in familiar ranges to start the week as investors gear up for key macroeconomic data releases and central bank meetings.
goTop
quote