Forced by the $4.47 billion settlement case to wind down operations and reimburse all investors, TerraForm Labs made a first step towards settling with creditors. In a message on X on March 28, 2025, the company announced to be taking in LUNC & several other Crypto Loss Claim submissions from March 31, 2025.ย
The LUNC, USTC & LUNA crypto claims portal will be live till April 30, 2025 at 11:59 p.m. (prevailing Eastern Time). However, some of the Terra ecosystem tokens are excluded from the reimbursement deal, for instance Luna 2.0 on Terra 2.0, which was launched after the drastic price downturns of the original Terra chain in May, 2022.
Back then, the horrendous de-pegging of the algorithmic stablecoin Terra USD (UST) took a $40 billion bite in Terraโs liquidity, taking down the main token Terra Luna (LUNA) along in the downward spiral to a 99% drop in a matter of weeks.
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After a while, the original blockchain was given to the community and rebranded as Terra Luna Classic (LUNC), in hopes that dedicated community developers would restore some of the Layer-1 chainโs original value.
Details To Note For LUNC, LUNA & USTC Holders
Once filling the crypto loss claim submission, itโs important to note that evidence can be both automatic and manual. For those wanting a quick & smooth process, thereโs the ability to authenticate via read-only API keys. On the other hand, Terra Luna Classic (LUNC) holders are able to submit account statements, screenshots & transaction logs.
Certainly, manual verification will take a longer period of time, while automatic verification via API can offer an initial determination of the expedited reimbursement timeline. For selected blockchains, the identification process will be easier with a free transaction signature on the Online Portal, Terraโs official blog promises.
As the U.S. Securities and Exchange Commission (SEC) reached an agreement with TerraForm Labs in June, 2024, Terra chainโs founder Do Kwon and several associates were still found liable for โrecklessly orchestrating one of the largest frauds in U.S. historyโ by the jury. Thus, the $4.47 billion penalty included $3.59 billion in disgorgement, $466.95 million in prejudgement interest and another $420 million in civil penalties.
On The Flipside
- Digital assets with liquidity under $100 are not eligible for refunds, according to the statement, while it remains unclear what versions of Terra (LUNA) qualify.
- Despite the $4.47B settlement with the U.S. Securities and Exchange Commission (SEC), all Terraโs tokens slumped further since the positive ruling last summer.
- Terra Luna Classic (LUNC) dipped by 59% in yearly terms, while the de-pegged stablecoin Terra Classic USD (USTC) remained at pennies on the dollar.
Why This Matters
The controversial case of TerraForm Labs plays a key part in shaping crypto regulation, setting a precedent for investor protection and business accountability.
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