The United States Bankruptcy Court for the District of Delaware has announced that shareholders of Terraform Labs Pte. Ltd. (TFL) and Terraform Labs Limited (TLL) must submit their preliminary proofs of claim for cryptocurrency loss by 5:00 p.m. ET on August 21, 2024. This filing is crucial for those who intend to vote on the Chapter 11 plan, focusing only on establishing eligibility to vote and not on the eventual distribution of claims, which will be addressed later in the bankruptcy process.
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The court clarified that stakeholders with claims against TFL that arose before January 21, 2024, and TLL that arose before July 1, 2024, must file their case by the stipulated deadline to ensure their participation in the voting process. This preliminary filing will not impact the final submission for distribution under the plan, which remains a separate matter.
Via X, Terra powered by LUNA (@terra_money) clarified: “If you have a cryptocurrency loss claim against TFL that occurred before January 21, 2024, or against TLL that occurred before July 1, 2024, please file your claim before the preliminary cryptocurrency loss claim deadline to ensure that your claim is considered only for purposes of the Chapter 11 vote. For the avoidance of doubt, the preliminary cryptocurrency loss claim deadline is for the Chapter 11 plan vote only, not for allocation or distribution, which will be addressed in the Chapter 11 plan vote. chapter 11 plan.”
Stakeholders are invited to submit their proof of claim for loss of cryptocurrency either through the official website of Epiq Corporate Restructuring, LLC, the Claims and Notification Agent, or by delivering their claims in person or by mail to the designated addresses. It is emphasized that claims must be filed in English, denominated in U.S. dollars as of the applicable petition date, and must be signed under penalty of perjury.
The definition of a “Cryptocurrency Loss Claim” includes claims against debtors arising out of the purchase, sale, or reversal of transactions involving a wide range of crypto assets related to the Terra ecosystem. This covers Various shapesincluding wrapped or bridged versions of any coin or token, staked or linked Terra crypto assets, and any derivatives or swaps.
With respect to eligibility to file, it is clarified that all persons or entities holding claims for cryptocurrency loss against the debtors that arose prior to the petition dates and who wish to vote on the chapter 11 plan must file a claim. Exemptions are granted to stakeholders who have already filed a proof of claim in a form substantially similar to the preliminary proof of claim for cryptocurrency loss form, to those whose claims have been accepted or paid in full by the debtors, and to creditors who do not wish to vote on the plan.
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Failure to file a preliminary proof of claim for cryptocurrency loss by the deadline will result in stakeholders being unable to vote on the Chapter 11 plan. However, it will not prevent them from filing a claim for future distributions under the confirmed plan, highlighting the procedural nuances of these bankruptcy case.
At press time, Terra Luna Classic (LUNC) was trading at $0.00008666.
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