Key Takeaways
- Terraform Labs will open its Crypto Loss Claims Portal for creditors to submit claims.
- Certain assets, including Luna 2.0 holdings and tokens with under $100 in on-chain liquidity, are ineligible.
- Galaxy Digital has settled with the New York Attorney General for $200 million over its LUNA promotion.
Terraform Labs is launching a claims portal for creditors affected by its collapse, but not all investors who lost money on LUNA and TERRA will be eligible for compensation.
Separately, Galaxy Digital has settled with the New York Attorney General’s Office over its promotion of LUNA.
Terraform Labs Opens Crypto Loss Claims Portal
Terraform Labs announced on Friday, March 28, that it will open the Crypto Loss Claims Portal on March 31 and will allow creditors to submit claims until April 30.
To file a claim, creditors must register on the portal and provide proof of ownership—such as wallet addresses or read-only API keys—along with other required documentation.
Kroll Restructuring Administration will assist creditors with the process.
Who Can Claim
Once a claim is submitted, the plan administrator will determine its value based on eligible cryptocurrencies.
However, certain assets will not qualify, including Luna 2.0 holdings on Terra 2.0 and cryptocurrencies with less than $100 in on-chain liquidity.
Claimants submitting manual evidence may experience delays in the review process, while those providing read-only API keys will likely have their claims processed faster.
Once submitted, claims will be reviewed by the Wind Down Trust.
Creditors will be notified within 90 days whether their claim has been approved or if additional review time is needed.
If undisputed, an initial payment will be issued as soon as possible.
Galaxy Digital Settles Over LUNA Promotion
Meanwhile, Galaxy Digital has reached a $200 million settlement with the New York Attorney General’s Office over allegations related to its promotion of LUNA.
The investigation found that Galaxy heavily promoted LUNA while failing to disclose its holdings and sales to the public, a violation of the Martin Act and Administrative Law.
While Galaxy Digital did not admit to or deny the allegations, it agreed to pay the settlement in installments over the next three years, with the first payment scheduled soon.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
