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Terraform Labs has launched an official claims portal for victims of the TerraUSD (UST) collapse, enabling creditors to seek compensation for their crypto losses linked to the failed Terra ecosystem.
The move follows the company’s court-approved bankruptcy wind-down plan and a $4.47 billion settlement with the US Securities and Exchange Commission (SEC).
Terraform’s portal, claims.terra.money, will be live from 31 March 2025 through 30 April 2025 at 11:59 p.m. ET, giving affected users a one-month window to submit claims.
Terraform Labs Creditors: The Crypto Loss Claims Portal is scheduled to open for submission of Crypto Loss Claims on March 31, 2025. Creditors may file Eligible Crypto Loss Claims at claims.terra.money. The deadline to file is April 30, 2025 at 11:59 p.m. (prevailing Eastern
The recovery process is part of broader efforts to compensate investors after the 2022 collapse of TerraUSD and Luna triggered an estimated $40 billion in losses across global markets.
TerraUSD claims process
The Crypto Loss Claims Portal will allow creditors to submit claims by registering and verifying their ownership of impacted assets.
Users with holdings in the Terra ecosystem, including supported networks, must complete a free on-chain transaction as verification.
For other networks, Terraform recommends providing a read-only API key, though manual alternatives such as transaction logs or account statements will be accepted with longer review times.
Claims will be evaluated by the Plan Administrator based on the user’s verified holdings.
Assets under $100 in on-chain liquidity, and certain excluded tokens like Luna 2.0 on Terra 2.0, are ineligible for reimbursement.
Review and payouts
Once a claim is submitted, it will be reviewed by the Wind Down Trust, the entity overseeing Terraform’s bankruptcy process.
Creditors can expect an update or final claim amount within 90 days of the 30 April deadline.
Those who receive a final decision can either accept or dispute the amount via the same online portal.
Claims that are accepted without dispute will qualify for pro rata payments.
Distribution will begin as soon as funds become available, although exact payment dates have not been disclosed.
Terraform has clarified that any payments to the SEC under its legal settlement will only occur after approved creditor claims are addressed.
Bankruptcy and SEC settlement
In September 2024, Terraform Labs was granted court approval to begin its formal liquidation process.
This followed a significant fraud verdict in April that led to a $4.47 billion settlement with the SEC.
The agreement came after Terraform and co-founder Do Kwon were found responsible for misleading investors and triggering the Terra ecosystem’s implosion.
The settlement amount will be partially covered by Kwon’s assets, which include PYTH tokens and other holdings, though regulatory fines will only be paid after creditor obligations are fulfilled.
The bankruptcy plan’s primary goal is to recover and redistribute funds to victims, prioritising those who suffered financial losses in the 2022 crash.
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