Terraform Labs Pte. Ltd.'s Plan Administrator has filed a motion in Delaware bankruptcy court seeking to establish April 30, 2025, as the deadline for cryptocurrency investors to file claims related to losses from the collapse of the Terra ecosystem.
Filed in the United States Bankruptcy Court for the District of Delaware (Case No. 24-10070-BLS), the motion outlines comprehensive procedures for processing claims from investors who suffered losses when Terra's UST stablecoin dramatically de-pegged from its $1 target in May 2022. The filing, submitted by Richards, Layton & Finger, P.A. and Kirkland & Ellis LLP as co-counsel, details specific criteria for eligible claims.
The motion establishes that claims must stem from cryptocurrency purchases made before May 13, 2022, at 6:15 p.m. EDT - the moment when Terra's founder, Do Kwon, publicly acknowledged UST's failure. During the de-pegging event, UST's value plummeted from approximately $1.00 to $0.13.
The Plan Administrator proposes using an online portal (claims.terra.money) for claim submissions, citing the need for efficient processing of complex cryptocurrency transaction data. The procedures include provisions for both "Preferred Evidence" through blockchain verification and "Manual Evidence" for claims requiring additional review.
To ensure broad notification, the Administrator plans to publish notices on CoinDesk and various social media platforms, including X (formerly Twitter), Discord, Medium, and Telegram. The motion also requests authority to protect claimants' personal information due to potential security risks, noting previous phishing attempts in other cryptocurrency bankruptcy cases.
The proposed procedures follow Terraform's Chapter 11 filing on January 21, 2024, and subsequent SEC settlements related to misrepresentations about the stability of the Terra ecosystem.
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Document length: 37 pages