Terraform Labs launches claims portal for algorithmic UST stablecoin crash victims

Terraform Labs, the bankrupt firm behind the failed TerraUSD (UST) stablecoin, has launched a crypto claims portal.

This platform is designed to compensate users affected by the project’s dramatic crash in 2022. Creditors can submit claims between March 31 and April 30, 2025. Claims submitted after the deadline will not be considered.

To file a claim, users must prove asset ownership by providing information that includes wallet addresses, read-only API keys, and other supporting documents.

A Wind Down Trust will assess the claims created during Terraform Labs’ ongoing bankruptcy process.

Meanwhile, not all assets will qualify for compensation. Crypto holdings with on-chain liquidity under $100 and specific tokens like Luna 2.0 on the Terra 2.0 blockchain are excluded.

UST creditors can expect an initial determination of their claim amount within 90 days after the submission deadline. They will have the option to accept or dispute the result.

However, if a claim is not contested, disbursements will begin as soon as practicable, and all payouts will be distributed pro rata.

Considering this, Terraform Labs urged creditors to review the official Crypto Loss Claim Procedures on the claims portal to ensure their submissions meet the required standards.

Terraform filed for Chapter 11 bankruptcy in January 2024, years after the fallout from the UST crash. In September 2024, a US court approved the filing following a $4.47 billion settlement with the Securities and Exchange Commission (SEC).

$200 Million LUNA settlement

In a separate development, investment firm Galaxy Digital reached a $200 million settlement with the New York Attorney General.

According to the regulator, the asset management firm and its founder, Michael Novogratz, promoted the LUNA token while quietly offloading large amounts without telling investors. It pointed out that Galaxy acquired LUNA in 2020 and later marketed it to clients despite its selling plans.

The regulator stated:

“Galaxy’s conduct, including its misrepresentations and omissions about Luna while simultaneously selling Luna and failing to disclose its then-present intent to sell, constituted violations of the Martin Act and violations of New York Executive Law Section 63(12).”

According to the settlement, Galaxy didn’t admit wrongdoing but agreed to pay the fine in installments over three years, starting with $40 million due within two weeks.

The company will also update internal policies to improve transparency and avoid conflicts of interest in future token promotions.

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