2 days ago
Terraform Labs, the bankrupt steadfast down the failed TerraUSD (UST) stablecoin, has launched a crypto claims portal.
This level is designed to compensate users affected by the project’s melodramatic clang successful 2022. Creditors tin taxable claims betwixt March 31 and April 30, 2025. Claims submitted aft the deadline volition not beryllium considered.
To record a claim, users indispensable beryllium plus ownership by providing accusation that includes wallet addresses, read-only API keys, and different supporting documents.
A Wind Down Trust volition measure the claims created during Terraform Labs’ ongoing bankruptcy process.
Meanwhile, not each assets volition suffice for compensation. Crypto holdings with on-chain liquidity nether $100 and circumstantial tokens similar Luna 2.0 connected the Terra 2.0 blockchain are excluded.
UST creditors tin expect an archetypal determination of their assertion magnitude wrong 90 days aft the submission deadline. They volition person the enactment to judge oregon quality the result.
However, if a assertion is not contested, disbursements volition statesman arsenic soon arsenic practicable, and each payouts volition beryllium distributed pro rata.
Considering this, Terraform Labs urged creditors to reappraisal the authoritative Crypto Loss Claim Procedures connected the claims portal to guarantee their submissions conscionable the required standards.
Terraform filed for Chapter 11 bankruptcy successful January 2024, years aft the fallout from the UST crash. In September 2024, a US tribunal approved the filing pursuing a $4.47 cardinal settlement with the Securities and Exchange Commission (SEC).
$200 Million LUNA settlement
In a abstracted development, concern firm Galaxy Digital reached a $200 cardinal colony with the New York Attorney General.
According to the regulator, the plus absorption steadfast and its founder, Michael Novogratz, promoted the LUNA token portion softly offloading ample amounts without telling investors. It pointed retired that Galaxy acquired LUNA successful 2020 and aboriginal marketed it to clients contempt its selling plans.
The regulator stated:
“Galaxy’s conduct, including its misrepresentations and omissions astir Luna portion simultaneously selling Luna and failing to disclose its then-present intent to sell, constituted violations of the Martin Act and violations of New York Executive Law Section 63(12).”
According to the settlement, Galaxy didn’t admit wrongdoing but agreed to wage the good successful installments implicit 3 years, starting with $40 cardinal owed wrong 2 weeks.
The institution volition besides update interior policies to amended transparency and debar conflicts of involvement successful aboriginal token promotions.
The station Terraform Labs launches claims portal for algorithmic UST stablecoin clang victims appeared archetypal connected CryptoSlate.
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