Terraform Labs, the company behind LUNA and TerraUSD, is set to launch its crypto loss claims portal on March 31. This portal aims to reimburse individuals who lost at least $100 due to the collapse of the Terra ecosystem in 2022.

The move comes after a Delaware court approved Terraform Labs’ plan to wind down operations. The judge overseeing the case agreed with the company’s bankruptcy plan, calling it a “welcome alternative” to further litigation over investor losses.

Terraform Labs settled with the US Securities and Exchange Commission (SEC) in June 2024 for $4.47 billion. To be eligible for reimbursement, claimants must submit a claim and supporting documentation through the portal by April 30. Claims under $100 will not be accepted.

There are two types of evidence that can be submitted: manual and preferred. Manual evidence includes transaction logs, account statements, and screenshots, while preferred evidence refers to read-only API keys. The company warns that claims submitted with manual evidence may face a longer review process and could be disallowed if preferred evidence is also available.

Terraform Labs estimates that it could pay out anywhere from $184.5 million to $442.2 million to investors and stakeholders, but the total amount of eligible losses is still difficult to determine.

The company’s fall from grace was swift and shocking. In June 2024, Terraform Labs announced that it would cease operations and transfer control of the Terra blockchain to its community. This came after the collapse of its $45 billion ecosystem involving its stablecoin and LUNA token. The founder, Do Kwan, was later arrested and extradited to the United States, where he is facing eight felony charges.

The collapse of the Terra ecosystem sent shockwaves through the crypto community, with Bitcoin losing 37% of its value in just 30 days. Kwan’s US court hearing has been delayed until April 10 as prosecutors review new evidence.

This news serves as a reminder of the risks involved in the volatile world of cryptocurrency. It also highlights the importance of due diligence and caution when investing in any digital assets. As the crypto market continues to evolve, it is crucial for investors to stay informed and make informed decisions.