Terraform Labs Launches Claims Portal to Reimburse Creditors

Terraform Labs has announced the launch of its Crypto Loss Claims Portal, which is slated to open on March 31, 2025. This portal represents a vital element of Terraform Labs’ settlement agreement with the U.S. Securities and Exchange Commission (SEC), marking the beginning of the reimbursement process for creditors who suffered losses due to the Terra ecosystem’s collapse.

The announcement, issued on March 28, 2025, stipulates that creditors must submit their claims, along with all necessary supporting documentation, through the designated portal, accessible at http://claims.terra.money, by the deadline of April 30, 2025, at 11:59 p.m. Eastern Time.

Terraform Labs Initiate Creditor’s Claim

Potential claimants must register via the designated portal at http://claims.terra.money to initiate a claim. Registration requires the submission of verifiable proof of ownership for the affected cryptocurrency assets. Acceptable evidence includes wallet addresses and/or read-only API keys.

Furthermore, claimants should provide any additional supporting documentation necessary to substantiate their claim. Creditors should contact Kroll Restructuring Administration at Terraforminfo@ra.kroll.com for assistance with the claims process.

Creditors must carefully review the Crypto Loss Claim Procedures outlined on the portal to ensure full compliance with all specified requirements. Claim amounts will be calculated based on holdings of Eligible Loss Cryptocurrency.

Certain cryptocurrency assets are ineligible for claims, including those with on-chain liquidity valued at less than $100 and specific holdings such as Luna 2.0 on Terra 2.0.

Court Legal Settlement

Following its Chapter 11 bankruptcy filing in the U.S. in January 2024, where it declared assets and liabilities between $100 million and $500 million, Terraform Labs has launched its claims portal.

In September 2024, a U.S. bankruptcy court sanctioned the company’s plan to cease operations after reaching a $4.47 billion settlement with the SEC. This settlement resolved fraud charges related to the collapse of TerraUSD (UST) stablecoin.

The SEC’s accusations focused on Terraform Labs and Do Kwon for allegedly misleading investors about TerraUSD’s ability to maintain its $1 peg. The agency claimed that in May 2021, when TerraUSD initially fell below $1, Kwon and Terraform covertly arranged for a third party to purchase significant quantities of TerraUSD to reinstate its peg.

Concurrently, they publicly misrepresented the recovery as stemming from the algorithm’s inherent efficacy. Furthermore, the SEC asserted that Kwon and the company falsely stated that Terraform’s blockchain integrated with Chai, a popular South Korean mobile payment application.