The post Court Sets Date for Victims of Terra Collapse to File Crypto Loss Claims appeared on BitcoinEthereumNews.com.

The Terraform Labs bankruptcy case has set up a date for victims of the Terra collapse to file crypto loss claims. A court has established a key deadline for filing initial crypto loss claims, marking a significant step closer to relief for those affected by the Terra ecosystem collapse.  Notably, victims must submit their claims by August 21, 2024, at 18:00 ET or 22:00 UTC, per a recent disclosure. A Step Toward Relief for Terra Victims This deadline enables victims to take part in the Chapter 11 bankruptcy proceedings of Terraform Labs. Recall that in May 2022, the Terra ecosystem experienced a severe collapse. The downfall began with the depegging of the purported stablecoin TerraUSD. This led to an enormous $40 billion loss for investors, with TerraUSD and Terra tokens dropping almost 99%. The crisis spread beyond Terra, triggering a contagion across the broader crypto market. In response, Bitcoin (BTC) plummeted to $17,593 just a month later. Terraform Labs, the development firm behind the Terra ecosystem, filed for Chapter 11 bankruptcy in January 2024. This step was an effort to handle the aftermath of the implosion and restructure amid financial difficulties. As part of the ongoing bankruptcy proceedings, the court has now mandated that anyone with a crypto loss claim against Terraform Labs must file by the August deadline. This is crucial for those who want to participate in voting on the proposed Chapter 11 plan. Eligible claimants are individuals who suffered losses from Terraform Labs Pte Ltd before Jan. 21, 2024, and the ones who suffered losses from Terraform Labs Limited before July 1, 2024. However, it is important to note that missing the deadline will not prevent future claim submissions but will impact voting rights on the plan. Also, the filing is solely for voting on the plan,…

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Filed under: News - @ July 24, 2024 2:24 pm