Terraform Labs, the corporate that created the cryptocurrency LUNA and the stablecoin TerraUSD (UST), is launching a portal for individuals to file claims for his or her losses beginning on March 31.
The portal is designed for anybody who misplaced at the least $100 when the Terra ecosystem collapsed in 2022. The claims should be submitted by 11:59 pm ET on April 30, and should you misplaced lower than $100, your declare received’t be accepted.
To file a declare, victims might want to present proof of their loss. There are two sorts of proof that may be submitted. One known as “guide proof,” which incorporates issues like transaction logs, account statements, and screenshots. The opposite known as “most well-liked proof,” which is best and consists of read-only API keys.
Terraform Labs has warned that claims with guide proof may take a very long time to course of and could be rejected if most well-liked proof is offered.
Terraform Labs says it expects to reimburse between $184.5 million and $442.2 million to individuals who have been affected by the crash, however the complete quantity they are going to pay out continues to be onerous to determine.
The corporate’s resolution to launch this claims portal comes after a Delaware courtroom authorized its chapter plan, which permits Terraform Labs to shut down its operations and keep away from going by extra authorized battles with traders.
In June 2024, Terraform Labs reached a settlement with the U.S. Securities and Alternate Fee (SEC) and agreed to pay $4.47 billion to settle the fees. After the collapse of the Terra ecosystem, Terraform Labs determined to cease its operations and hand over management of the Terra blockchain to the neighborhood. The corporate additionally offered off a few of its essential property and burned a few of its holdings to attempt to forestall additional harm.
Earlier than it collapsed, Terraform Labs ran a $45 billion ecosystem with its stablecoin TerraUSD (UST) and the LUNA token. After the crash, Terraform Labs founder Do Kwon was arrested in Montenegro and despatched to the U.S. to face legal fees. His courtroom listening to has been delayed till April 10 as prosecutors take a look at new proof.
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