Terraform Labs, the company responsible for the failed Luna token and TerraUSD stablecoin, has announced that it will be launching a claims portal on March 31 for investors to file for losses related to the company’s bankruptcy. The online system, operated by claims administrator Kroll, is part of the company’s court-supervised wind-down process. Investors have until April 30 to submit claims through claims.terra.money, and late submissions will not be accepted. This means that those who miss the deadline will not be able to recover any losses. Eligible claims must be tied to specific cryptocurrencies listed in the case documents and held during the period surrounding the Terra ecosystem’s collapse. Assets with less than $100 in on-chain liquidity and certain others, such as Terra 2.0’s Luna, will not qualify. Claimants must also provide proof of ownership, with read-only API keys from exchanges being the preferred method. Claims will be reviewed and verified, with initial decisions being shared within 90 days after the deadline. Approved claims will be eligible for pro rata distributions once processing concludes. The Terra ecosystem collapsed in 2022, resulting in the largest destruction of wealth in just three days in the history of the cryptocurrency space. LUNA’s market capitalization dropped from over $41 billion to $6 million during this period. This news comes after Terraform Labs and its co-founder Do Kwon agreed to pay the SEC a combined $4.5 billion in a civil fraud case.
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