Terraform Labs Bankruptcy Claims: Official Portal Opens Soon for Creditors

Terraform Labs has outlined plans to introduce a dedicated claims portal, set to become operational on March 31, 2025. This initiative targets creditors who suffered losses due to the company’s bankruptcy, which followed the significant downturn involving TerraUSD and its associated digital currencies.

This portal will function as the official system for affected individuals to lodge claims in pursuit of potential financial compensation. It is imperative for claimants to be aware of the strict submission deadline: April 30, 2025. The company has stated that no extensions beyond this date will be permitted.

Claim Submission Requirements

To lodge a valid claim, individuals must provide verifiable proof of ownership for their cryptocurrency holdings. Methods such as providing wallet addresses or supplying read-only API keys are considered acceptable forms of evidence. For assets specifically held within the Terra ecosystem or its affiliated networks, an additional step involving a verification transaction will be mandatory.

Holdings on Centralized Exchanges

Creditors whose affected digital assets were custodied on centralized exchanges (CEXs) are requested to provide API keys as the primary verification method. In situations where API keys are unavailable, claimants have the alternative option of submitting manually compiled transaction data or official account statements. However, it should be noted that claims submitted using manual evidence are likely to experience extended processing durations. Moreover, these manually submitted claims risk denial if it is determined that electronic proof, such as an API key, was accessible but not utilized.

Eligibility and Exclusions

Potential claimants need to understand that not every type of digital asset will qualify for recovery under this claims process. A comprehensive list detailing the specific cryptocurrencies eligible for claims will be published on the portal itself once it is active. Certain assets are already confirmed as ineligible, including Luna 2.0 (associated with the Terra 2.0 network) and any digital assets that had an on-chain liquidity value below $100 at the relevant time.

Claim Processing and Payout Timeline

Following the submission of a claim, creditors should expect to receive an initial assessment within a timeframe of approximately 90 days. Should the review process require more time, the designated plan administrator will formally notify the claimant. Claims that are deemed valid and remain undisputed will be advanced to the payment stage. According to the current projections, the first wave of distributions to successful claimants is anticipated to commence around August 2025. Although a substantial pool of funds is earmarked for distribution, individual recovery amounts will differ based on various factors, and claimants should not expect to recover the full value of their original losses.

Importance of Accuracy

It is highly recommended that all creditors meticulously ensure the completeness and accuracy of the information provided in their claims. Any inaccuracies or omissions regarding relevant transaction history, such as unreported sales, swaps, or staking activities involving the assets claimed, could serve as grounds for the rejection of the entire claim.