Terraform Labs Opens Claims Portal for Crypto Creditors Amid Bankruptcy Proceedings

• Terraform Labs opens claims portal for creditors on March 31, with an April 30 deadline.
• Eligible creditors could receive payouts between $185M and $442M starting in August 2025.
• Claims must include proof of ownership, with manual evidence facing longer review times.

Terraform Labs, the defunct blockchain firm behind TerraUSD and LUNA, will open its Crypto Loss Claims Portal on March 31, 2025, offering creditors a chance to seek compensation. The company announced this move on March 28, 2025, setting a firm deadline of April 30, 2025, for claim submissions. Creditors affected by the firm’s 2022 collapse, which erased $40 billion from its ecosystem, must act quickly. Claims filed after the cutoff at 11:59 p.m. Eastern Time will not qualify for payouts, according to Terraform Labs.

The portal, accessible at claims.terra.money, aims to streamline the reimbursement process following the company’s Chapter 11 bankruptcy filing in January 2024. Kroll Restructuring Administration will manage the platform and assist creditors. Terraform Labs estimates payouts could range from $185 million to $442 million, based on a bankruptcy plan approved in September 2024 by U.S. Bankruptcy Judge Brendan Shannon, as reported by Reuters. This step follows a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC) over fraud allegations.

Proof of Ownership and Eligibility Criteria for Claims

Creditors must provide clear proof of ownership to file claims successfully. For assets held on the Terra ecosystem or supported networks, they need to sign a free verification transaction through the portal. Those with holdings on centralized exchanges must submit a read-only API key. However, manual evidence like transaction logs or account statements remains an option, though it may delay reviews or risk rejection if electronic proof exists, Terraform Labs warns.

Not all cryptocurrencies qualify for compensation. The company will publish a list of eligible assets on March 31, 2025, excluding tokens with on-chain liquidity below $100 and Luna 2.0 on Terra 2.0. The plan administrator will assess claims based on these criteria, ensuring only verified holdings receive payouts. Creditors should prepare accurate documentation, as incomplete submissions could lead to disqualification, per the firm’s guidelines.

Review Process and Expected Payout Timeline

After submission, the Wind Down Trust will review claims and issue initial determinations within 90 days of the April 30 deadline. Creditors will receive notifications through the portal, with an option to accept or dispute the outcome. Approved, undisputed claims will trigger pro-rata payments as soon as possible, though exact dates remain unclear. Terraform Labs projects the first distributions to begin after August 2025.

The process prioritizes creditor repayments over SEC penalties, per the settlement terms. Meanwhile, Galaxy Digital settled a separate $200 million case with the New York Attorney General over its LUNA promotion, highlighting broader fallout from Terraform’s collapse. Creditors must act by April 30 to secure their share of the estimated $185 million to $442 million fund.