Terraform Labs, the company managing LUNA and TerraUSD assets, has announced the opening of a portal for submitting damage claims on March 31, 2025. Investors who have suffered financial losses due to the company’s collapse will now have the opportunity to receive compensation.
This is reported by Business • Media
Claims for compensation will be accepted until April 30, 2025, with a minimum loss amount of $100 required for submission. To verify their financial losses, affected individuals can provide two types of evidence: manual (transaction statements and screenshots) and preferred (API keys). The latter, as noted by the company, are more reliable and may expedite the claims review process.
Payment Volumes and Forecast
Preliminary estimates suggest that the total payout amount may range from $184.5 million to $442.2 million. However, the final amount will depend on the number of claims submitted and approved, as well as the accuracy of the assessed losses. Claims that lack sufficient evidence may be rejected.
It is worth noting that Terraform Labs faced mass lawsuits following the collapse of the Terra ecosystem in May 2022, resulting in total losses of $45 billion. In 2024, the company was able to settle matters with the U.S. Securities and Exchange Commission (SEC), agreeing to a payout of $4.47 billion.
Situation with the Founder
The collapse of Terra triggered a crisis in the cryptocurrency market, with analysts reporting that Bitcoin lost 37% of its value within a month. This was one of the largest crashes in the industry’s history, significantly impacting investor confidence in algorithmic stablecoins. The company’s founder, Do Kwon, was arrested in Montenegro, and in December 2024, a court ruled for his extradition to the U.S. He faces eight charges related to fraud, with court hearings scheduled for April 10.
“The number of individuals affected by the collapse of Terraform Labs may exceed one million.”