The Terraform Labs, behind the collapsed Luna Token and Terrausd Stablecoin, will open a portal on March 31, allowing investors to file cryptocurrency loss claims related to the company's downfall and subsequent bankruptcy.
The online system run by claims manager Kroll is part of a wind-blown process overseen by the company's courts. Investors will be required to file a claim through a claim until April 30th at 11:59pm. Terra.Money. Submissions in the later period will not be considered. This means that those who missed the deadline, according to the medium post, will lose their right to recovery.
Eligible claims must be linked to specific cryptocurrencies listed in case documents and held during the period surrounding the collapse of the Terra ecosystem. Particular assets such as the Terra 2.0 Luna are not eligible, such as assets with liquidity of less than $100 in the chain.
The claimant must also provide proof of ownership. The recommended method is the exchange's read-only API key. Administrators believe it is more reliable than screenshots and manually uploaded documents. The post adds that those using evidence manually may be facing an extension of the review period or risking a claim that has been completely denied.
Once submitted, the claim will be reviewed and verified. Initial decisions will be shared within 90 days of the deadline, and upon completion of processing, approved claims will be subject to pro-ration.
The Terra ecosystem collapsed in 2022, bringing the greatest destruction of wealth in just three days of the history of the cryptocurrency universe. Luna's market capitalization plummeted from over $41 billion to $6 million over that period.
Read more: Terraform Labs, Do Kwon agrees to pay a total of $4.5 billion in Civil Fraud incident
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