• Terraform Labs opens a claims portal for creditors affected by the UST collapse, with submissions due by April 30, 2025.
• Not all assets are eligible for reimbursement, with exclusions including Luna 2.0 and assets with low on-chain liquidity.
• We expect to complete initial claim reviews within 90 days and distribute pro-rata payments based on total verified losses.

Terraform Labs (TFL), the company that developed the ill-fated TerraUSD (UST) stablecoin, announced that its highly awaited Crypto Loss Claims Portal will start accepting business on Monday, March 31, 2025. The step is a milestone within the aftermath of the TerraUSD collapse that had shaken the cryptocurrency market in May 2022 and ultimately driven Terraform Labs to bankruptcy processes.

The failure of UST, an algorithmic stablecoin, wiped out billions of dollars in value. This collapse devastated countless investors and triggered wider chaos in the cryptocurrency market. Following the widespread devastation wrought, Terraform Labs is now moving to tackle creditor claims in a bid to provide some closure to the victims.

The portal is managed by the Kroll Restructuring Administration. It provides a platform for creditors affected by the UST collapse to submit claims. Claims must be submitted electronically through the official portal by the absolute deadline of April 30, 2025, at 11:59 p.m.ET. We will automatically reject late submissions, with no possibility of recovery. Terraform Labs has made it clear that missing this deadline will result in the forfeiture of any potential compensation. Creditors will have no recourse.

Terraform Labs Wind Down Trust to Handle Claims

The company will reveal the details of eligible cryptocurrencies for loss claims on March 31 and has already stipulated that not all assets qualify for reimbursement. We do not include assets with weak on-chain liquidity, like Luna 2.0 holdings, in the claims process. Creditors should carefully review the list of eligible assets when it is released.

To successfully file a claim, creditors must provide evidence of ownership. You can do this using read-only API keys or signed blockchain transactions. Terraform Labs will also accept manual proof, such as transaction logs and screenshots. However, the company has warned that submitting these documents can delay the review process and increase the chances of claim rejection.

Furthermore , once you submit a claim, Terraform Labs’ Wind Down Trust will review it, verify its validity, and determine the appropriate distribution of funds. Claimants can expect an initial determination or review notice within 90 days of the submission of their claims. If deemed eligible, we will pay creditors pro-rata distributions based on each claimant’s total losses relative to the total pool of creditors.

Terraform Labs Bankruptcy Marks UST Collapse Fallout

The TerraUSD debacle is one of the most notorious incidents in cryptocurrency history. The collapse of its algorithmic peg to the US dollar set off huge losses, causing panic throughout the digital asset market. The collapse also caused increased regulatory oversight and a raft of lawsuits against Terraform Labs. Following the lawsuits, Terraform Labs filed for bankruptcy, dramatically reversing its fortunes.

Moreover, the launch of the Crypto Loss Claims Portal marks a major development in the process of unwinding the fallout of the UST collapse. For most creditors, the portal represents the first tangible chance of recovery after one of the most devastating collapses in the crypto ecosystem.

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