Crypto Creditors Can Submit Claims to Terraform Labs by the End of April

Terraform Labs is set to launch a claims portal on March 31, 2025, for creditors affected by its bankruptcy following the collapse of TerraUSD and related cryptocurrencies.

This portal will allow those impacted to submit their claims for potential reimbursement. The deadline to submit claims is set for April 30, 2025, at 11:59 PM Eastern Time, with no extensions granted.

To file a claim, creditors must provide proof of ownership of their crypto assets, such as wallet addresses or a read-only API key. For assets within the Terra ecosystem or its supported networks, a verification transaction is required.

Creditors holding assets on centralized exchanges will need to provide API keys or, if unavailable, manual transaction data or account statements. Claims submitted with manual evidence could experience longer processing times and may be rejected if electronic proof is available.

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Not all crypto assets are eligible for claims. Only certain cryptocurrencies will qualify, and a list will be made available on the claims portal. Assets such as Luna 2.0 on Terra 2.0 and those with on-chain liquidity under $100 are excluded from compensation.

After submitting a claim, creditors will receive an initial determination within 90 days. If more time is required, the plan administrator will notify them. Claims that are undisputed will be processed for payout, with initial distributions expected to begin in August 2025. Total payouts are estimated to range between $185 million and $442 million, though not all creditors will be eligible for the full amount.

It is crucial for creditors to ensure their claims are complete and accurate, as failure to report actions like sales, swaps, or staking could lead to claim rejection.

Alexander Stefanov