Terraform Labs Offers Compensation to UST Crash Victims with Crypto Claims Portal

Terraform Labs has launched a crypto claims portal to compensate users affected by the 2022 TerraUSD (UST) crash. Creditors can submit their claims between March 31 and April 30, 2025. To file a claim, wallet addresses and other supporting documents must be provided.

Certain tokens like Luna 2.0 and assets with low liquidity will not be eligible for compensation. The initial assessment of claims will be made within 90 days, and claims that are not contested will be paid out proportionally. Terraform filed for Chapter 11 bankruptcy in 2024 and reached a $4.47 billion settlement with the SEC.

Galaxy Digital Reaches $200 Million Settlement with New York Attorney General

In another development, investment firm Galaxy Digital reached a $200 million settlement with the New York Attorney General.

According to the regulator, the asset management firm and its founder Michael Novogratz promoted the LUNA token but failed to inform investors about selling large amounts of it. Galaxy acquired LUNA in 2020 and later marketed it to clients while hiding plans to sell.

The regulator stated:

“Galaxy’s false representations about Luna and its failure to disclose its plans to sell Luna while selling it constituted violations of the Martin Act and New York Executive Law Section 63(12).”

According to the settlement, Galaxy did not admit to the charges but agreed to pay the fine in installments over three years, starting with a $40 million payment due within two weeks.

The company will also update its internal policies to improve transparency and avoid conflicts of interest in future token promotions.

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