Terraform Labs opening loss claims portal on March 31 after SEC settlement and founder arrest

From Cointelegraph

March 28, 2025 1:22:00 pm:

Terraform Labs set to launch crypto loss claims portal on March 31 to reimburse individuals who lost at least $100 in 2022. The move comes after approval to wind down operations following a $4.47 billion settlement with the SEC in June 2024. Claim submission deadline is April 30 with manual and preferred evidence options available.

Terraform Labs announced it would cease operations in June 2024, transferring control of the Terra blockchain to the community. Founder Do Kwon was arrested in Montenegro and extradited to the US, facing eight felonies. Collapse of Terra ecosystem led to significant impact on crypto community, with Bitcoin losing 37% of its value in 30 days.

Kwon’s US court hearing delayed until April 10 as prosecutors review new evidence. Terraform Labs and Kwon found liable for fraud in SEC case. Company estimates potential reimbursement of $184.5 million to $442.2 million for investors, but total eligible crypto losses remain uncertain. Claims with manual evidence could face prolonged review process.

Read more at Cointelegraph: Terraform Labs to open loss claims portal on March 31