The post Terra Investors, Alert! Claim Your Share of the $4.47 Billion Settlement NOW 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.
How can you recover your losses? Let’s dive in.
Court Ruling and Settlement Details
On June 12, 2024, the U.S. District Court for the Southern District of New York approved a final judgment against Terraform Labs and its founder, Do Kwon. The court found both guilty of fraudulent activities related to crypto asset securities.
As part of the ruling, Terraform Labs must pay $4.47 billion in disgorgement, prejudgment interest, and civil penalties. This payment addresses part of the $40 billion market loss from the Terra ecosystem collapse. The money will be managed through Terraform’s bankruptcy process, with a focus on compensating affected investors and creditors.
Kwon’s Asset Transfer
According to the court’s order, Kwon must transfer $204 million to Terraform’s bankruptcy estate. This includes $7 million in cash, all crypto assets held by the Luna Foundation Guard, and his PYTH crypto asset tokens.
These assets will be used to compensate affected investors. The penalties also send a strong message against similar fraudulent activities.
What Next for Investors
Terraform Labs will propose a Chapter 11 plan for liquidation. This plan will involve setting up a liquidating trust or estate representative to manage and sell assets to benefit creditors and harmed investors.
The plan and related documents will be available for review. Affected parties will have the chance to vote on the plan and raise any objections. The confirmation hearing for the Chapter 11 plan is expected in the fall of 2024. Once approved, detailed instructions for filing claims and deadlines will be posted online.
Investors and creditors are encouraged to stay updated on these developments to ensure their claims are properly processed.
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The road to recovery for investors has begun. Are you excited?
