Terra Sets Deadline for LUNA, LUNC, and USTC Recovery for Victims

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Terraform Labs provided important updates concerning investors’ crypto loss claims. According to the update, any person or entity with a valid crypto loss complaint can file their claims for consideration during the Chapter 11 Bankruptcy voting.

Terra’s recovery process will likely help the prices of LUNA, USTC, and LUNC recover as it repays its creditors. Notably, Terraform Labs crashed in May 2022, leading to severe losses for investors and creating FUD in the crypto market. 

Terraform Labs Provides Deadline for Affected Users’ Crypto Claims

Terraform Labs officially revealed the deadline for initial crypto loss claims. These claims are for entities in the Chapter 11 bankruptcy case of Terraform Labs Limited (TLL) and Terraform Labs Pte Ltd. (TFL).

Important Notice for the Terra Community regarding the Crypto Loss Bar Date:

The Preliminary Crypto Loss Bar Date for filing Crypto Loss Claims – for chapter 11 voting purposes only – in the Chapter 11 bankruptcy cases of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited…

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) July 22, 2024

Only individuals and entities with a Crypto Loss Claim against TFL before January 21, 2024, and against TLL before July 1 are eligible for this recovery process.

Eligible claimants must file their claims in the TFL and TLL bankruptcy cases on or before 5:00 pm EST on August 21. Furthermore, any holder who fails to file a crypto loss claim before the deadline will remain a creditor until distribution is addressed.

Terraform Labs’ repayment efforts coincide with Mt. Gox’s repayment of its creditors who suffered losses in 2014.

What’s Next for LUNA and LUNC?

Some observers speculate that LUNA and LUNC could record price gains since the TFL and TLL bankruptcy process has renewed optimism in the Terra community.

TFL will reopen its Shuttle Bridge to enable the redemption of wrapped assets on the Terra Classic blockchain.

1/ Dear Terra community,

We would like to inform you about a recent bankruptcy court order in TFL’s chapter 11 case authorizing TFL to do the following: 1) Reopen the Shuttle bridge for the redemption of wrapped assets on Terra Classic; 2) Undelegate & burn the 150M LUNA…

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) July 19, 2024

Following the court order, TFL will transfer all assets held in the Shuttle Bridge to new and secure wallets. Terraform Labs developers will also create a new and simplified Shuttle Bridge that enables users to redeem their wrapped assets.

2/ Shuttle bridge

Under the court order, TFL intends to move all assets held in the Shuttle bridge wallets to new, more secure wallets and make available a new, simplified Shuttle bridge interface that allows users to redeem wrapped assets from the bridge wallets until 30 days…

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) July 19, 2024

The improved Shuttle Bridge will allow users to redeem their wrapped assets from bridge wallets. This redemption will continue until 30 days after TFL’s chapter 11 plan launches.

3/ After that time, TFL intends to permanently shut down the Shuttle bridge and any remaining assets will be burned. TFL’s proposed chapter 11 plan has not yet been approved by the bankruptcy court and is not anticipated to go effective until late September 2024, at the earliest.

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) July 19, 2024

TFL will permanently close the Shuttle Bride and burn all unclaimed assets after the 30-day grace period ends.

Also, based on the bankruptcy court order and in compliance with the US SEC, TFL will start the process for 125 million LUNA. These LUNA tokens are currently staked with 49 validators selected on the recommendation of the Terra Delegation Committee.

4/ Undelegating & burning LUNA

Also under the bankruptcy court order, and in compliance with the settlement reached between TFL and the SEC, TFL will begin the undelegation process of the 125M LUNA currently staked with the 49 validators selected by recommendation of the Terra…

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) July 19, 2024

Despite the renewed optimism in the Terra community, the prices of LUNC and LUNA have remained down in the last 24 hours. LUNC’s price at 6:47 am EST is $0.00008650, with a 2.8% decline in the past 24 hours. The token has gained 9.2% in the last seven days, suggesting renewed interest from the buyers.

Similarly, LUNA’s price within the same timeframe is $0.4281, slightly decreasing in the last 24 hours. Nevertheless, LUNA has gained 5.7% in the last week as the crypto market posts an improved performance.