Terraform Labs to open claims portal March 31 for crypto creditors
Payouts not expected before august
In September last year, as part of its bankruptcy proceedings, Terraform Labs received court approval to begin winding down operations. A key part of this process is repaying creditors. To facilitate this, Terraform’s liquidators will begin collecting claims through a newly launched portal.
In a message to creditors posted on the official Terraform Labs X (formerly Twitter) account, the company announced that the crypto loss claims portal will open on March 31, 2025, at http://claims.terra.money.
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Creditors may submit claims until April 30, 2025, at 11:59 PM ET. Claims submitted after this deadline will not be accepted.
"To submit a claim, register at http://claims.terra.money, provide proof of ownership (e.g., wallet address(es) and/or read-only API keys), or any other required supporting documentation, and complete the claims form. For assistance, contact the restructuring administration team at Terraforminfo@ra.kroll.com," the liquidator’s message states.
To be eligible for compensation, creditors must prove ownership of their crypto assets. It is strongly recommended that they provide complete and accurate information. Failure to disclose actions such as sales, swaps, or staking may result in rejection of the claim.
For crypto assets held in the Terra ecosystem or other supported networks, users will be required to sign a verification transaction through the portal free of charge.For assets held on other platforms, providing an API key is preferred. Manual proof, such as screenshots, account statements, or transaction logs, will not be fast-tracked and may be rejected if electronic equivalents are available.
Payouts not expected before august
Creditors will be notified of the status of their claims within 90 days after the April deadline. These notices will either confirm the estimated compensation amount or indicate that additional time is needed for review.
The claimable amount will be determined by the plan administrator. However, it has already been stated that assets with liquidity below $100, as well as certain others — including Luna 2.0 on Terra 2.0 — will not be eligible for reimbursement.
Creditors will have the opportunity to accept or dispute the administrator’s decision. Uncontested claims will be eligible for initial distributions as soon as possible, with all distributions to be made on a proportional basis.
As we wrote, Terraform Labs Pte Ltd. (TFL), which shook up the cryptocurrency market in 2022, filed for Chapter 11 bankruptcy protection in Delaware, USA, on January 21, 2024.
