One of the worst events in 2022 was the collapse of Terra. Do Kwon’s second failed algorithmic stablecoin attempt cost billions to investors. The ripple effects were even greater, playing a role in the collapse of FTX and triggering bankruptcies for companies like Celsius and 3AC. Today, a claims portal for creditors has been announced.
Details of the Terra Creditors Claims Portal
Recently, a last-minute approval of the second bankruptcy plan was disclosed. Following this, a claims screen for creditors will be created, reminiscent of the FTX refund process. Today, Terraform Labs, the company behind TerraUSD and LUNA, announced the claims portal after filing for Chapter 11 bankruptcy in January 2024.
The claims portal for creditors will open on March 31. The deadline for registrations on the Crypto Loss Claims Portal will be April 30, after which applications will not be considered.
“Managed by Kroll Restructuring Administration LLC, the Crypto Loss Claims Portal will open on March 31, 2025, at claims.terra.money. Claimants must submit the Crypto Loss Claim Forms and all supporting documents electronically through the Online Portal.”
Next Steps for Terra Victims
The company holds up to $500 million in cash and derivatives for payment. Terraform indicated that between $185 million to $442 million may be paid to creditors as part of a reorganization plan approved by U.S. Bankruptcy Judge Brendan Shannon. However, it remains unclear how much of this will be spent on litigation costs incurred during the process.
Creditors’ claims are substantially higher, with the SEC and public debts exceeding billions. However, you can apply through the officially announced address to test your luck.
FTX prioritized payments for claims under $50,000, and a similar process may occur here. If that happens, and if you genuinely incurred losses, your best move is to submit your claim. You should consult with your exchange regarding the API mentioned in the first section, ensuring you only create a read-only API and keep your data secure.
