Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Terraform Labs opens claims portal for $442M payout

Terraform Labs opens claims portal for $442M payout

GrafaGrafa2025/03/31 06:30
By:Mahathir Bayena

Terraform Labs has opened a claims portal for investors affected by the May 2022 collapse of TerraUSD (CRYPTO:UST) and Luna (LUNA), with New York-based Kroll overseeing the process.

The portal, available from March 31 to April 30, allows creditors to submit evidence of losses, including wallet addresses and transaction logs.

Compensation will be distributed pro rata based on approved claims, though Kroll has warned payouts may be “materially less” than documented losses due to limited funds.

Terraform Labs estimates it could disburse between $184.5 million and $442.2 million, though the total eligible losses remain uncertain.

The process follows the firm’s Chapter 11 bankruptcy filing in January 2024, which listed assets and liabilities between $100 million and $500 million.

A Delaware court approved the wind-down plan, calling it a preferable alternative to prolonged litigation.

Creditors will receive notifications within 90 days of the portal’s closure and may dispute determinations.

Payouts will be made in U.S. dollars, as Kroll stated distributions in other currencies are not feasible for some claimants.

The settlement aligns with Terraform Labs’ $4.5 billion agreement with the SEC in July 2024 to resolve fraud charges, which mandated consumer protections similar to those in traditional finance.

1inch Labs’ Hedi Navazan noted the regulatory implications, stating that while the process may restore trust, it reflects standard financial protections already established in traditional markets.

Founder Do Kwon’s fraud trial, set for January 2026, remains pending.

The compensation plan represents an effort to address investor losses while navigating ongoing legal challenges.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!