Terraform Labs Reveals Key Update On Crypto Loss Claims Voting

Terraform Labs Pte. Ltd. and Terraform Labs Limited have issued a notice to creditors on how to submit claims for losses related to cryptocurrencies in their Chapter 11 bankruptcy cases.

The creditors need to submit their Preliminary Crypto Loss Proof of Claim forms before August 21, 2024, to be included among those voting on the proposed Chapter 11 Plan.

Terraform Labs Date for Crypto Loss Claims Voting

In a recent Terraform notice, all persons and entities who may have crypto loss claims against Terraform Labs must file their Preliminary Crypto Loss Proof of Claim forms on or before August 21, 2024. This submission is crucial to the creditors who want to exercise their right in voting for the proposed Chapter 11 Plan.

The claims process is intended to allow all interested parties to engage in the restructuring plan and, if applicable, receive distributions from the crypto loss claims pool.

Terraform Labs Pte. Ltd. and Terraform Labs filed for their Chapter 11 cases voluntarily on January 21, 2024, and July 1, 2024. The notice also highlights the need to follow the specific guidelines for filing claims because otherwise creditors might be prevented from voting on the plan.

Eligibility and Criteria for Filing Claims

Each of the Creditors that suffered losses from the dealings with the Debtors before the petition dates has to file a claim if they want to vote on the plan. The term ‘claim’ is used in a wide sense and includes claim to payment whether it is contested or not, liquidated or unliquidated, actual or potential, and whether it has become due or not. It also includes equitable remedies that give rise to payment rights. 

Entities that are required to file include the individuals, partnerships, corporations, joint ventures, trusts, and the government entities.

Some of the exceptions to the filing of proofs of claim are those who have already filed their claims in a form that is substantially similar to the instant form, the claims that have already been allowed by court order, the paid claims of the Debtors, the claims between Terraform Lab’s entities, and those who do not want to exercise their voting right on the plan.

Submission Guidelines and Procedures

The notice describes certain procedures for filing the Preliminary Crypto Loss Proof of Claim forms in detail. The claims must be in English, expressed in U.S. dollars as of the date of the petition, and made under penalty of perjury. The claims can be submitted through the website of Epiq or by mailing it to Epiq Corporate Restructuring, LLC.

However, supporting documentation is not necessary at this informational level, though it may be requested at a later time if the proposed Chapter 11 Plan is confirmed.

While electronic submission is encouraged, paper submissions through first-class mail, hand delivery, or overnight delivery are also allowed. No claim shall be accepted if submitted by facsimile, telecopy or by email (except through the designated electronic means).

Missing the filing of the Preliminary Crypto Loss Proof of Claim will mean that the holder will not be treated as a creditor for voting on the Debtors’ Chapter 11 Plan. Before, Terraform Labs had set the General Bar Date for filing claims to be on the 9th of August, 2024.

LUNC & USTC Price Trend

Meanwhile, Terra Classic (LUNC) price has been bearish in the last 24 hours with the price swaying between an intra-day high and low of $0.00009209 and $0.00008823. At press time, LUNC price was trading at $0.00009057, a 0.31% decline. 

However, the USTC price was bullish despite a bull-bear tussle for dominance with a 24-hour high and low of $0.02138 and $0.01974. At press time, USTC was trading at $0.02039 a 0.75% surge from the support level.

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