Terra Luna Investors: Here’s How to Claim Your Share of The $4.47 Billion Settlement!
The post Terra Luna Investors: Here’s How to Claim Your Share of The $4.47 Billion Settlement! appeared first on Coinpedia Fintech News
The U.S. Securities and Exchange Commission (SEC) has released important information for Terra Luna investors affected by the $40 billion collapse in 2022. After many questions from investors about how to get their money back, the SEC has put out a guide explaining how compensation will work following a recent settlement.
Following a recent settlement, they’ve launched an info page to guide you through the process of recovering your losses.
Court Ruling and Financial Repercussions
On June 12, 2024, the U.S. District Court for the Southern District of New York approved a final consent judgment against Terraform Labs and Kwon. The court found the company and its founder liable for fraudulent activities related to crypto asset securities.
As a result, Terraform Labs is required to pay a substantial sum of $4.47 billion in disgorgement, prejudgment interest, and civil penalties. Meanwhile, This comes from the $40 billion market loss in 2022 caused by the Terra ecosystem collapse.
This payment will be addressed through Terraform’s ongoing bankruptcy proceedings, focusing on compensating harmed investors and creditors.
Kwon’s Financial Contributions
Under the court’s order, Kwon must transfer $204 million to Terraform’s bankruptcy estate. This amount includes $7 million in cash, all crypto assets held by the Luna Foundation Guard, and his PYTH crypto asset tokens.
These assets will be allocated to affected investors as part of the compensation process. Meanwhile, the penalties serve as a clear warning to anyone considering similar wrongdoing activities.
Chapter 11 Plan & Liquidation Process
Terraform Labs will seek approval for a liquidating Chapter 11 plan, establishing a liquidating trust or estate representative. This plan aims to liquidate assets to benefit creditors and harmed investors.
The plan and disclosure statement will be made available for review, and affected parties will have the opportunity to vote on the plan and submit objections.
What Next for Investors
The confirmation hearing for the Chapter 11 plan is expected to take place in fall 2024. Once the bankruptcy court approves the plan, detailed procedures for submitting proof of claim and related deadlines will be posted online.
Investors and creditors are encouraged to stay updated on these developments to ensure their claims are properly addressed.
