By Nermeen Nabil Khear 
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.
Terraform Labs Creditors: The Crypto Loss Claims Portal is scheduled to open for submission of Crypto Loss Claims on March 31, 2025. Creditors may file Eligible Crypto Loss Claims at https://t.co/7YQvfQr76x. The deadline to file is April 30, 2025 at 11:59 p.m. (prevailing Eastern…
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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.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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