Nearly three years after the historic collapse of the Terra ecosystem (LUNA-UST), Terraform Labs has made a significant move by announcing the opening of the “Cryptocurrency Loss Claim Portal” on March 31, 2025. This is part of the Chapter 11 bankruptcy process that the company filed for in January 2024.


The total disbursement value could reach 442 million USD, and creditors have until April 30, 2025, to submit compensation requests. However, for those who miss the deadline, the opportunity for compensation may be completely closed.



Details of the compensation plan


According to the restructuring plan approved by U.S. Bankruptcy Judge Brendan Shannon, Terraform Labs may pay between 185 million to 442 million USD to impacted individuals and organizations.


Conditions for filing a compensation request:


Creditors need to provide proof of ownership of cryptocurrency assets through one of the following forms:



  • Self-custody wallet: Wallet address if assets are held in a personal wallet (self-custody).



  • Exchange account: Read-only API if assets are held on a centralized exchange (CEX).



  • Manual evidence: Transaction history and account statements. Those who use this method will have a longer review process.




Those who submit requests after April 30, 2025, will not be considered for compensation.


Notably, although #TerraformLabs had reached a settlement agreement of 4.47 billion USD with the SEC over fraud allegations, this compensation will not be affected by the SEC. This means that LUNA-UST creditors will be prioritized for payment before Terraform meets any obligations to the SEC.



What future awaits the Terra ecosystem?


Since the collapse in May 2022, Terraform Labs has been trying to recover with a 4-year Terra 2.0 plan. However, to date, the project has not shown signs of a strong recovery.



  • The Terra Classic Token ($LUNC ) currently has a market capitalization of about 339 million USD, down more than 100 times from its previous peak of 40.9 billion USD.



  • Founder Do Kwon is still facing legal charges in several countries after being arrested in Montenegro in 2023.



  • Confidence in #Terra has significantly decreased as major projects are no longer building on this ecosystem.




Nevertheless, Terraform Labs is still working to address its obligations to creditors. For those who suffered losses from the LUNA-UST collapse, this may be the last opportunity to recover some of their lost assets. But is this really a sign of a brighter future for Terra, or just a closing chapter on the 60 billion USD blockchain dream?