The Terra ecosystem collapse in 2022 was one of the most devastating events in crypto history, wiping out billions of dollars in investor funds. Led by Do Kwon’s failed algorithmic stablecoin model, the fallout triggered a domino effect that reached far beyond Terra itself—contributing to the collapses of Celsius, Three Arrows Capital (3AC), and even playing a role in FTX’s downfall.
Now, a potential path to compensation has emerged. Terraform Labs has announced that its Crypto Loss Claim Portal will officially open on March 31, 2025, following its Chapter 11 bankruptcy filing in January 2024.
How the Terra Claim Portal Works
According to the announcement, claimants will need to submit their documentation through claims.terra.money by April 30, 2025—the official deadline. Late submissions will not be considered.
The portal will be operated by Kroll Restructuring Administration LLC and will support both manual and preferred forms of documentation. Claimants are encouraged to provide Preferred Evidence such as read-only API keys from major exchanges. These are considered more secure and verifiable than manually uploaded files like screenshots or spreadsheets.
Terraform warns that using only manual evidence could lead to extended review periods—or even denial of the claim—especially if more reliable API data is available and not submitted.
How Much Compensation Is On the Table?
Terraform Labs currently holds around $500 million in cash and liquid assets. As part of the court-approved restructuring plan, the company estimates payouts to creditors may range between $185 million and $442 million. However, how much of that remains after legal and administrative fees is still unclear.
Victims are not just individual investors. The SEC and public creditor claims total several billion dollars. With limited funds, it’s expected that smaller claimants may receive priority, similar to the approach used in the FTX proceedings.
As noted by Dey There, claimants with verified losses under $50,000 might have a higher chance of receiving partial or full reimbursement during the early stages of distribution.
What Should Terra Victims Do Now?
If you’re an affected investor, start by preparing your documentation. Reach out to your exchange for help generating a read-only API key—do not share full-permission API credentials. Once you have your data, submit it through the official portal before the deadline.
Whether compensation will be substantial or symbolic remains to be seen, but this may be the last formal opportunity to reclaim any portion of your lost funds.
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