Terraform Labs will launch a dedicated claims portal on March 31, 2025, as part of its Chapter 11 restructuring. The portal will allow victims of the 2022 TerraUSD (UST) and LUNA crash to file for compensation. The company has set aside up to $185 million to distribute to eligible creditors affected by the algorithmic stablecoin’s failure. The crash erased tens of billions of dollars from the crypto market and triggered global regulatory fallout.
The portal will remain open until April 30, 2025, at 11:59 p.m. ET, providing a one-month window for affected parties to submit claims. According to the official announcement, both retail and institutional investors who held UST, LUNA, or other assets in the Terra ecosystem at the time of the collapse will be eligible, subject to verification.
Claim Submission Process
To file a claim, users must register on the Terraform claims portal and provide verifiable evidence of their holdings at the time of the depeg event in May 2022. Accepted documentation includes:
- Wallet addresses
- Read-only API keys for centralized exchanges
- Other supporting transaction records
A Wind Down Trust, established during Terraform Labs’ Chapter 11 proceedings in the Delaware Bankruptcy Court, will oversee the process. They will assess claims based on combining on-chain data and exchange platform records.
Importantly, the company stated that not all assets are eligible. Claims will exclude Luna 2.0 holdings, as well as assets with less than $100 in on-chain liquidity, according to guidelines published by Terraform Labs.
>>> Read more: Are LUNC Token Burns Enough to Revive Terra Luna Classic?
Rebuilding Trust in the Aftermath of Collapse
The portal launch comes nearly three years after UST lost its 1:1 peg to the U.S. dollar, triggering a death spiral that caused LUNA’s value to collapse. The crash wiped out more than $40 billion in market value. The incident had widespread consequences, contributing to the downfall of multiple crypto institutions and drawing scrutiny from regulators worldwide.
Terraform Labs filed for Chapter 11 bankruptcy protection in January 2024 and has since been navigating legal challenges, including lawsuits from the U.S. Securities and Exchange Commission (SEC) and potential civil claims from investors.
While the $185 million restitution fund is only a fraction of the total losses incurred in 2022, the company says the initiative represents a good-faith effort to address the damage and provide closure for affected users.
Industry Implications for Investor Protection
Terraform’s move signals an increasingly formalized approach to investor compensation in the wake of crypto project failures. Although restitution in decentralized finance (DeFi) has often been ad hoc or nonexistent, the structured claims process and court-supervised distribution represent a notable shift toward accountability and transparency.
However, some legal experts and community members have pointed out that the claims portal launch also coincides with Terraform Labs’ upcoming bankruptcy hearing in April 2025, potentially positioning the initiative as both a restitution mechanism and a strategic legal move.
>>> Read more: SEC vs Terraform Labs $4.6B Landmark Settlement
For now, the claims portal represents a rare opportunity for victims of a high-profile DeFi collapse to seek partial recovery through a formalized, verified process. This might set a reference point for future industry standards in investor redress and post-crisis recovery.
Readers’ frequently asked questions
How do I know if I’m eligible to file a claim on the Terraform Labs portal?
Eligibility depends on whether you held Terra ecosystem assets like UST or LUNA at the time of the collapse in May 2022. Specifically, if you had these tokens in a personal crypto wallet (such as MetaMask or Terra Station) or on a centralized exchange that supported Terra assets (like Binance or KuCoin). If you can prove it, you may qualify. You’ll need to provide documentation such as wallet addresses, exchange account records, or read-only API keys that confirm you owned eligible assets at the time of the depeg. Keep in mind that newer Terra assets like LUNA 2.0, or coins with low liquidity, aren’t eligible.
What happens after I submit my claim? Will I automatically receive compensation?
Submitting a claim does not guarantee compensation. Once submitted through the official portal, an independent Wind Down Trust will review your claim and verify your submission using on-chain data and third-party exchange information. If your claim is validated, you will receive a portion of the $185 million compensation pool. The pool will be distributed proportionally based on all approved claims. The exact timeline for when payouts will occur has not been confirmed yet. However, it will likely follow after the portal closes on April 30, 2025.
What is Chapter 11 and why is Terraform Labs doing this now?
Chapter 11 is a type of bankruptcy protection under U.S. law allowing a company to restructure its operations and finances while continuing to function. Terraform Labs filed for Chapter 11 in January 2024 to deal with outstanding liabilities and legal proceedings. Launching the claims portal is part of that process. It allows the company to formally address creditor claims and potentially reduce future legal exposure. This timing also aligns with a scheduled court hearing in April 2025, making it a critical step in resolving the financial and legal consequences of the Terra collapse.
What Is In It For You? Action Items You Might Want to Consider
Double-check your Terra exposure from 2022 — you might be owed a payout.
If you held UST, LUNA, or other Terra ecosystem tokens around the time of the May 2022 collapse, now’s the time to dig into your old wallets or exchange histories. Even if you think your losses were insignificant, it’s worth checking. The $185 million claims pool is real, and the portal launches on March 31. You’ve got until April 30 to file, but don’t leave it until the last minute.
Prepare your documentation ahead of time — verification will matter.
You’ll need proof of ownership to file a successful claim. That means exporting transaction history, retrieving old wallet addresses, or requesting API access logs from exchanges. Start gathering those now so you’re ready to go the moment the portal opens. The Wind Down Trust will be strict about eligibility, so clean records will save you headaches.
Watch how this unfolds — it could set the tone for future collapses.
This isn’t just about getting compensated. How Terraform handles this may influence how other projects approach investor restitution in the future. If you’re an active DeFi trader, this case could offer key insights into what to expect if another protocol fails — and how to position yourself legally and financially. Keep tabs on the outcomes.
