Terraform Labs to Open Claims Portal for Investors on March 31, Reimbursement Available for Eligible Crypto Losses
Terraform Labs to Open Claims Portal for Investors on March 31
The portal launches on March 31, 2025, and the deadline to file is April 30. Claims must relate to losses from specific eligible crypto assets, and those with lower on-chain liquidity are not included.
The Terraform Labs claims portal is a platform where users can stake their assets, participate in governance decisions, and access various features of the Terra ecosystem.
The portal allows users to claim rewards for staking LUNA or other supported assets, as well as vote on proposals that shape the future of the network.
It also enables users to manage their accounts, check balances, and track rewards earned through staking.
With a user-friendly interface, the claims portal streamlines the process of participating in Terra's decentralized finance (DeFi) ecosystem.
Eligibility Criteria for Claims
To be eligible for reimbursement, claimants must submit a claim and supporting documentation through the crypto loss claims portal by 11:59 p.m. ET on April 30. Claims under $100 will not be accepted. There are two types of evidence that claimants can submit: manual and preferred. Manual evidence includes transaction logs, account statements, and screenshots. Preferred evidence refers to read-only API keys.
Why Preferred Evidence is Encouraged
Preferred evidence, such as read-only API keys from exchanges, is considered more reliable than manual evidence like screenshots or manually uploaded documents. Terraform Labs warns that claims submitted with manual evidence ‘will likely be subject to a protracted review process’ and may be disallowed if preferred evidence is also available.
Preferred evidence refers to the most reliable and credible form of proof in a given situation.
It is often used in legal, academic, and professional settings to establish facts or verify claims.
In general, preferred evidence is based on direct observation, documentation, or expert testimony.
For example, in a court case, a video recording may be considered preferred evidence over eyewitness testimony.
In research, primary sources such as original data or experiments are often preferred over secondary sources like summaries or reviews.
Timeline of Events
The Terra ecosystem collapsed in 2022, leading to the largest destruction of wealth in just three days in the cryptocurrency space’s history. The company behind the collapse, Terraform Labs, will launch its crypto loss claims portal on March 31. Investors have until April 30 at 11:59 p.m. ET to submit claims through the portal.
Terraform Labs is a blockchain technology company founded in 2018 by Do Kwon and Daniel Shin.
The company is best known for developing the Terra (LUNA) cryptocurrency and its associated stablecoin, 'TerraUSD (UST)'.
Terraform Labs aims to create a decentralized financial system that enables fast and low-cost transactions.
Its innovative algorithm allows for the creation of stablecoins pegged to the value of major fiat currencies.
With a strong focus on scalability and usability, Terraform Labs has gained significant attention in the cryptocurrency market.
Background on Terraform Labs
Terraform Labs presided over a $45 billion ecosystem involving its algorithmic stablecoin and the LUNA token before its dramatic collapse in May 2022. The company has settled with the US Securities and Exchange Commission for $4.47 billion and will launch its crypto loss claims portal to reimburse individuals who lost at least $100 due to the collapse.
Estimated Amount of Eligible Crypto Losses
Terraform Labs estimates it could pay from $184.5 million to $442.2 million to investors and stakeholders, though the total amount of eligible crypto losses remains difficult to determine.
Conclusion
The launch of the crypto claims portal marks an important step in Terraform Labs’ wind-down process. Investors have until April 30 to submit their claims and supporting documentation through the portal. Claimants must meet specific eligibility criteria and submit preferred evidence, such as read-only API keys, for faster reviews.
- coindesk.com | Terraform Labs to Open Claims Portal for Investors on March 31
- cointelegraph.com | Terraform Labs to open loss claims portal on March 31
