Urgent: Terra Community Must File Crypto Loss Claims For Voting Rights Now

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As a seasoned researcher with extensive experience in the crypto and blockchain space, I understand the importance of compliance with court orders and deadlines, especially when it comes to bankruptcy proceedings involving major players like Terraform Labs Pte. Ltd. (TFL) and Terraform Labs Limited (TLL). The recent announcement by the United States Bankruptcy Court for the District of Delaware requiring stakeholders to submit their preliminary Crypto Loss Proofs of Claims by August 21, 2024, is a crucial step that cannot be overlooked.

Those with an interest in Terraform Labs Pte. Ltd. (TFL) and Terraform Labs Limited (TLL) are mandated by the United States Bankruptcy Court for the District of Delaware to submit their preliminary Crypto Loss Claims by August 21, 2024, at 5:00 pm (ET). This step is essential for individuals aiming to participate in the Chapter 11 plan vote. The purpose of this filing is solely for determining eligibility to vote and not influencing the distribution of claims, which will be tackled during a later stage of the bankruptcy proceedings.

Here’s Why Terra Victims Should Act Now

For individuals or entities with grievances against TFL and TLL preceding January 21, 2024 (for TFL) and July 1, 2024 (for TLL), it is essential to submit their claims by the designated deadline in order to be eligible for the voting procedure. Filing this preliminary claim will not influence the subsequent distribution process under the plan, which is a distinct step.

If you have a cryptocurrency loss claim against Terra (TFL) that occurred before January 21, 2024, or against Terra Luna Foundation (TLL) that occurred prior to July 1, 2024, submit these claims by the specified Preliminary Crypto Loss Claims Deadline. This is crucial for your claims to be taken into account during the chapter 11 voting process. Please note that this deadline pertains only to the chapter 11 plan voting and not to the determination of allowance or distribution, which will be handled separately in the chapter 11 plan.

Based on my extensive experience working with corporate restructurings and cryptocurrency claims, I strongly advise stakeholders to adhere to the following instructions regarding the submission of their Crypto Loss Proofs of Claim.

As a crypto investor, I can tell you that when it comes to making a “Crypto Loss Claim,” it refers to any demand for compensation resulting from deals involving various crypto assets connected to the Terra ecosystem. This may include transactions with wrapped or bridged versions of coins or tokens, staked or bonded Terra cryptocurrencies, and derivatives or swaps.

For individuals or entities with pre-petition Crypto Loss Claims against the Debtors intending to participate in the Chapter 11 plan vote, they are required to submit a claim. This rule applies to losses incurred before the petition dates. Notable exceptions include:

As an analyst, I’d put it this way: Missing the deadline to submit a Preliminary Crypto Loss Proof of Claim means that stakeholders will be unable to participate in voting on the Chapter 11 plan. Nonetheless, they can still file for future distributions under the confirmed plan, demonstrating the intricate procedural aspects of these bankruptcy cases.

At press time, Terra Luna Classic (LUNC) traded at $0.00008666.

Urgent: Terra Community Must File Crypto Loss Claims For Voting Rights Now

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2024-07-23 15:11