How to Claim Compensation for Losses from Terra Luna Collapse

Many people who invested in Do Kwon's high-interest crypto scheme are now seeking compensation after suffering substantial losses.

At its peak, Luna, Kwon’s cryptocurrency, was valued at around $40 billion, while the Anchor protocol’s assets reached about $17 billion.

Investors were enticed by the promise of 19-20% annual returns, leading them to buy Terra stablecoins and invest in Anchor. Despite the initial appeal, these assets have since seen their value drop by over 99%.

Following a ruling by a New York court, Kwon and Terraform Labs were found guilty of fraud. The company faces billions in penalties, and Kwon has been declared a fugitive.

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Although Terraform and Kwon owe around $4.68 billion, payments have not been fully made, and the SEC is working to enforce the judgment.

If you owned Terra, Luna, Anchor, or Mirror before or in May 2022, you might qualify for compensation. Start by consulting the SEC’s official notice for guidance. Be wary of fraudulent claims and verify any communication with the SEC directly.

Terraform is currently facilitating the claims process as part of its Chapter 11 bankruptcy proceedings. Detailed instructions and a draft claim form are available on the SEC’s claims portal.

Important deadlines are approaching, with submissions required by August 9 or August 21, depending on your case. For additional help, consider seeking advice from a bankruptcy attorney.

Alexander Stefanov