Terraform Labs has announced a deadline for filing crypto loss claims in its bankruptcy case, sparking optimism for the recovery of LUNA, LUNC, and USTC.
Important Updates on Crypto Loss Claims
Terraform Labs has issued crucial updates for the Terra community regarding the filing of crypto loss claims. Individuals or entities with crypto loss claims against Terraform Labs' debtors can file these claims for Chapter 11 Bankruptcy voting purposes. This step is anticipated to aid in the recovery of LUNA, LUNC, and USTC prices as Terra aims to gradually compensate creditors.
Notice on Crypto Loss Bar Date
In an official announcement, Terraform Labs revealed the deadline for initial crypto loss claims in the Chapter 11 bankruptcy case of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL). Claims must be filed by August 21 at 5:00 PM ET.
“If you have a Crypto Loss Claim against TFL that arose before January 21, 2024, or against TLL that arose before July 1, 2024, please file them by the Preliminary Crypto Loss Claims Bar Date to ensure your claim is considered for Chapter 11 voting purposes only,” stated TFL.
Holders who fail to file their claims by the deadline will not be treated as creditors for voting purposes on the debtors’ plan. The status of creditors will be addressed in the Chapter 11 plan for allowance or distribution of claims.
Impact on LUNA and LUNC Ecosystem Prices
The bankruptcy proceedings of TFL are seen as bullish for the prices of LUNA and LUNC. TFL plans to reopen the shuttle bridge for redeeming wrapped assets on Terra Classic and will also burn tokens in the TFL and LFG wallets.
Currently, LUNA has fallen by 2% in the last 24 hours, trading at $0.4231 with a 24-hour low of $0.4184 and a high of $0.448. Despite this, trading volume has increased by 51%, showing growing interest among traders.
Similarly, LUNC has dropped 4% to $0.0000845 from a 24-hour high of $0.00009209. USTC also saw a 3% decline, now trading at $0.01927.
The upcoming deadlines and strategic moves by Terraform Labs are crucial for the potential recovery of LUNA, LUNC, and USTC in the crypto market.
Notice:
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