Terraform Labs announces important updates for the Terra community for filing their crypto loss claims. Any person or entity that believes they have a crypto loss claim against the debtors can file claims for Chapter 11 Bankruptcy voting purposes. This is expected to bring a recovery in LUNA, LUNC, and USTC prices as Terra plans to gradually work on making creditors whole.
Terraform Labs (Terra) in an official announcement revealed the deadline for initial crypto loss claims in the Chapter 11 bankruptcy case of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL). Individuals and entities seeking claims from the companies can file crypto loss claims for voting.
The preliminary crypto loss bar date for filing crypto loss claims in TFL and TLL bankruptcy cases is on August 21 at 5:00 pm ET.
“If you have a Crypto Loss Claim against TFL that arose before January 21, 2024, or against TLL that arose before July 1, 2024, please file them by the Preliminary Crypto Loss Claims Bar Date to ensure your claim is considered for Chapter 11 voting purposes only,” said TFL.
Any holder who fails to file crypto loss claims timely shall not be treated as a creditor for the purpose of voting on the debtors’ plan. The creditor status will remain as allowance or distribution of claims will be addressed in the Chapter 11 plan.
Also Read: Terra Luna Classic Major Upgrade Proposal Passed, LUNC To Extend 42% Rally
Terra bankruptcy proceedings are bullish for LUNA and LUNC prices. TFL will reopen shuttle bridge for the redemption of wrapped assets on Terra Classic. It will also burn tokens in the TFL and LFG wallets.
LUNA price fell 2% in the last 24 hours, with the price currently trading at $0.4231. The 24-hour low and high are $0.4184 and $0.448, respectively. However, trading volume has increased by 51% in the last 24 hours, indicating interest among traders.
Meanwhile, LUNC price fell 4% to $0.0000845 from a 24-hour high of $0.00009209. USTC price also dropped 3% in the past 24 hours, with the price currently trading at $0.01927.
The selloffs in tokens came from futures traders as LUNC, 1000LUNC, and USTC futures open interest dropped double digits. Currently, the buying activity remains tepid as traders await market reactions to spot Ethereum ETFs debut.
Also Read: Mt Gox Moves $2.8B In Bitcoin, Crypto Falls Ahead ETH ETF
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