According to the company’s statement on March 28, Crypto Loss Claims Portal will be available on March 31st. The creditors will have to convey their requests and supportive documents over April 30 at 23:59 ET.

Requests will be calculated according to the amount of appropriate loss of crypto assets. Crypto assets and Luna 2.0, whose On-Chain liquidity is less than $ 100, will not be suitable for demand.

Terraform Labs initiates this demand portal as part of the compromise agreement with the US Securities and Stock Exchange Commission (SEC). This process aims to initiate the compensation process for creditors who are damaged by Terra collapse.

The company’s largest non -insistent creditors include Alexander Svavik of Standard Crypto and Ashley Swaren, who serves as a commercial leader at Tokenterminal.

Terraform Labs, in January 2024 in the United States, 11 bankruptcy applications by applying to the existence and debts of 100 million to 500 million dollars reported. In September 2024, a US Bankruptcy Court approved the plan to end its operations after a $ 4.47 billion reconciliation with the company’s SEC.

SEC claimed that Terraform Labs and his founding partner Do Kwon misleaded investors that Terrausd could maintain a $ 1 constant.

Especially in May 2021, when Terrausd fell below $ 1 for the first time, Terraform and Kwon recycled the constant by purchasing a large amount of Terrausd through a third party, but it presented this process incorrectly as if the algorithm was realized.

SEC also argued that the claims that Terraform’s blockchain is widely used with the South Korean Mobile Payment application Chai is also misleading.

In May 2022, the Terra ecosystem experienced a collapse of 40 billion dollars, as Terrausd lost its stability for US dollar. Terrausd was designed as an algorithmic stabilcoin instead of traditional reserves and was based on a burning and pressing mechanism that worked with Luna.

However, in May 2022, there were major outputs from Anchor Protocol (a lending platform offering 20 percent APY to Ustocol), which created sales pressure on the Ust.

Ust’s price from $ 1 to $ 0.98, then fell further. Panic sales increased instability and Terraform stepped a large amount of Luna to protect Labs’s constant. However, the excess Luna released caused the price to fall from 80 dollars to inches.

Terraform Labs could not save Ust’s constant despite using Bitcoin reserve worth $ 3 billion to stop the collapse.

Do Kwon was arrested in Montenegro in March 2023 and was returned to the United States at the end of 2024 and faced charges of fraud and money laundering.