Terraform Labs has announced a crucial update for the Terra community regarding the filing of crypto loss claims. This initiative aims to address claims against the debtors, potentially influencing the recovery of assets like LUNA, LUNC, and USTC amidst ongoing Chapter 11 Bankruptcy proceedings.
Key Details of the Announcement
In an official statement, Terraform Labs (TFL) disclosed the deadline for submitting initial crypto loss claims related to the bankruptcy cases of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL). Interested individuals and entities must file their claims by August 21, 5:00 pm ET, to participate in Chapter 11 Bankruptcy voting.
Failure to meet this preliminary crypto loss claims bar date will result in claimants not being recognized as creditors eligible to vote on the debtors’ plan. Any subsequent allowance or distribution of claims will be handled under the Chapter 11 restructuring plan.
Impact on LUNA and LUNC Prices
The developments in TFL’s bankruptcy proceedings are anticipated to have a positive effect on the prices of LUNA and LUNC within the Terra ecosystem. TFL plans to reactivate the shuttle bridge for the redemption of wrapped assets on Terra Classic and implement token burns from TFL and LFG wallets.
Despite a recent 2% drop, LUNA is currently trading at $0.4231, showing heightened trading volume, up by 51% over the last 24 hours. Meanwhile, LUNC has seen a 4% decline to $0.0000845, and USTC is down by 3% to $0.01927.
Conclusion
Terra’s announcement regarding the crypto loss claim deadline marks a significant step in the bankruptcy proceedings of Terraform Labs. The anticipated recovery in LUNA, LUNC, and USTC prices reflects growing investor interest and market optimism as the community awaits further developments in the Chapter 11 restructuring.
