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New Development in Terra (LUNA)! Terraform Labs Starts Payments After Agreement with SEC! Here are the Details...
The stablecoin TerraUSD (UST), which caused billions of dollars to be wiped from the market with its collapse, has become one of the biggest collapse stories in crypto history.
At this point, while the creditors are still waiting for payment, a new development occurred on the Terra front.
The company behind the collapsing stablecoin TerraUSD, Terraform Labs (TFL), announced that it will open a portal for creditors to file compensation claims.
Accordingly, Terraform Labs announced that the Crypto Loss Claims Portal will open on Monday, March 31, 2025.
Terraform Labs announced that creditors can submit crypto loss claims through X until April 30, 2025, at 23:59 ET.
"Requests made after this date will not be accepted, and creditors who do not make a request before this date will lose their potential compensation rights."
Creditors who wish to make a request must register on the portal, provide proof of ownership such as a wallet address or API key for inquiry, and fill out the request form.
Within 90 days from the request deadline, creditors will receive feedback via the portal regarding the requested amounts or if more review time is needed. Creditors can accept or contest the decision sent to them. Requests that are not contested will be eligible for proportional distribution of payments as soon as possible.
Terraform Labs received court approval to begin liquidation as part of its bankruptcy plan after reaching an agreement with the SEC in recent months. The company will pay $4.47 billion as part of the settlement. At this point, all cryptocurrencies, including the PYTH tokens held by co-founder Do Kwon, will be used to cover penalties. Payments to the SEC will only occur after Terraform has made payments to its creditors.