Terraform Labs to launch creditor claims portal next week: what’s next for LUNA price?

Nonoperational blockchain firm Terraform Labs confirmed opening its crypto loss claims portal on 31 March.

That comes after the company filed for insolvency in January 2024.

It applied for Chapter 11 bankruptcy after its $40 billion empire fell in 2022.

As part of its closure, Terraform Labs introduced a crypto loss claims portal.

The online portal allows creditors to claim refunds from losses that resulted from the Terra USD debacle and subsequent events.

According to the blog:

The Crypto Loss Claims Portal, managed by Kroll Restructuring Administration LLC, will open on 31 March 2025 at claims.terra.money to submit Crypto Loss Claims.

Meanwhile, the online portal will be open until 30 April 2025, with claims that miss the deadline declared void.

How to claim?

Proving asset ownership is key for creditors to claim reimbursements.

That includes verifying wallet addresses for the crypto holdings and API keys for assets on CEXs.

Meanwhile, eligible users should sign up on claims.terra.money and submit the essential supporting documentation.

Claimants will submit the required documents through the online portal.

The process targets fairness and transparency to refund creditors who endured losses because of Terraform Labs’ collapse.

The Wind Down Trust will examine and verify the submitted claims.

The platform will notify creditors about the claim’s status through the portal within three months.

The notification will clarify the claim amount or request additional time for review.

Terraform confirmed it will refund creditors between $185M and $442M as part of its restructuring plans.

Meanwhile, the Online Portal represents a key milestone for stakeholders and investors who endured losses due to Terraform’s debacle.

The strategic claim process allows affected participants to enjoy refunds and possibly recover from incurred losses.

LUNA price action

Terra’s token lost 9% in the past 24 hours to trade at $0.1926.

The surged trading volume reflects increased market activity as prices dip.

With Terraform Labs’ claim portal launching next week, enthusiasts will watch LUNA’s reactions in April and beyond.

Traders should brace for speculative volatility as participants seek money-making opportunities during the ecosystem developments.

LUNA’s price could soar if Terraform adopts a structured disbursement plan or an optimistic legal solution.

Also, the claims portal could bolster investor confidence if it proves reliable and transparent, supporting price actions.

On the other hand, the claims period could trigger renewed scrutiny.

That could revive investor worries about Terra’s financial and legal risks.

Negative sentiment will likely repel investors, hindering LUNA’s potential recoveries.

Moreover, claimants may dump their LUNA holdings to avoid devaluation, catalyzing selling pressure on the altcoin.

Furthermore, broad market developments could influence LUNA’s performance.

Solid recoveries could help stabilize the altcoin, while bearish trends will weaken it.

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