Crypto Bankruptcy Briefing · Case No. 24-10070 (Bankr. D. Del.)
If you hold a timely Crypto Loss Claim against the Terraform Labs estate, this page is for you. It explains how the plan works, how claims are decided, what the court record shows, and where the case stands today.
By Andrew, Turnpage Digital Markets · Published September 1, 2026
Start with the two numbers that matter. The Plan Administrator puts creditor claims above $5.5 billion. Estate assets come to about $100 million on conservative assumptions, built from the 500 million PYTH tokens, the venture portfolio and the estate's other holdings, none of which has a fixed value until it's sold. That works out to roughly two cents on the dollar before costs.
Nothing has been paid to creditors yet. The Q1 2026 report for the Wind Down Trust (Docket 1216) shows $52,695,127 paid out since October 1, 2024, of which $3,634,909 went out in that quarter, and $0 of it to holders of claims or interests. Q2 2026 reports were filed on July 30 (Dockets 1305–1307) but weren't yet available in readable form when this was written.
| Crypto Loss Claim reconciliation | Figure | As of |
|---|---|---|
| Claim forms submitted | 16,640 | Plan Administrator site, July 2026 |
| Initial Determinations issued | 8,449 | February 17, 2026 |
| Determinations accepted by claimants | ~87% | February 17, 2026 |
| Claims in individualized review | 3,129 | February 17, 2026 |
| Claimants asked for additional information | 3,760 | February 17, 2026 |
| Distributions to Crypto Loss Claim holders | $0 | Q1 2026 post-confirmation report |
The Plan Administrator filed Q2 2026 post-confirmation reports on July 30, 2026 (Dockets 1305–1307) and updated the Crypto Loss Claims registers on July 28, 2026 (Dockets 1303–1304). The figures above are the last publicly reported reconciliation counts.
Both lawsuits are at the motion-to-dismiss stage. Jump's defendants filed their motions on August 19 and 20, 2026, with briefing running through November 6. Jane Street's motion has been fully briefed since July 13 and is waiting on a ruling from Judge Ho. Neither case has produced a dollar for the estate, and either could end in zero.
There is no distribution date. The court has extended the wind-down authority once, from the end of 2025 to December 31, 2026, and with the Jump briefing running past November, another extension is the likely outcome. No party has committed to a distribution date, and nothing on the docket sets one. A motion filed August 19 (Docket 1321) drew an objection and had its hearing cancelled on August 28, which in Delaware usually means the parties resolved it or agreed to push it.
Here's the whole story in one sentence. A timely Crypto Loss Claim is a claim against a liquidating trust that holds a small pot of assets against billions of dollars of claims, has set no distribution date, and is counting on two lawsuits that may never pay.
Now the longer version. Terraform Labs Pte. Ltd. filed chapter 11 in Delaware on January 21, 2024. Eight months later, on September 20, Judge Shannon confirmed its liquidating plan (Docket 717; Docket 734). When the plan went effective on October 1, 2024, the estate's assets passed to a Cayman wind-down trust, with Todd Snyder of Piper Sandler as Plan Administrator.
One number you've probably seen: the SEC's $4.47 billion judgment. It's in every headline, and it sits behind creditors. The SEC collects nothing until creditors are paid in full. On the estate's own numbers, that won't happen.
The current figures are in the status section.
Rather than push tens of thousands of token holders through a conventional proof of claim, the plan (Sections 3 and 5.7 of Docket 717) gave their losses a class of their own, Class 5, with its own procedure.
A Crypto Loss Claim covers loss on an "Eligible Loss Cryptocurrency": UST, LUNA and the Terra-ecosystem tokens with more than $100 of on-chain liquidity. LUNA 2.0 on the new chain doesn't qualify.
The Kroll portal opened on March 31, 2025. The court moved the original April 30 deadline to May 16, 2025 at 11:59 p.m. ET, and a supplemental window ran from October 1 to November 24, 2025. Since then the court has denied late-claim motions in April and again in July 2026. In other words, the pool of filers is closed.
The procedure favors evidence a machine can verify. Read-only exchange API keys and wallet signatures are the preferred proof. Screenshots and statements go into "individualized review", where the Plan Administrator may disallow a claim if better evidence existed and the claimant didn't provide it. From the proven holdings he computes a Crypto Loss Amount, issues an Initial Determination, and opens a dispute window.
The portal launch notice of March 2025 put it bluntly: "Your pro rata share of amounts that are approved for distributions to holders of Allowed Crypto Loss Claims by the Plan Administrator may be materially less than your Crypto Loss Amount."
Here's the thing: a submitted claim isn't an allowed claim. The final allowed total will turn on the claims still in individualized review and on the outstanding information requests. And the pool isn't only retail. On October 7, 2025 the court approved a settlement reclassifying Three Arrows Capital's $1.3 billion claim, which the fund's liquidators had filed as a general unsecured claim, as a Crypto Loss Claim. It now shares the same pro rata pool as the individual filers.
| Class | Claims | Treatment under the confirmed plan |
|---|---|---|
| 1 | Priority non-tax claims | Paid in full |
| 2 | Secured claims | Unimpaired; collateral returned or claim paid |
| 3 | Beltran secured claims (Singapore representative action) | Paid from escrow under the Singapore court's order |
| 4 | General unsecured claims | Pro rata from the GUC Pool |
| 5 | Crypto Loss Claims | Pro rata from the Crypto Loss Claim Pool under the CLC Procedures |
| 6 | SEC claim ($4.47B) | No distribution until Classes 4 and 5 are paid in full |
Equity interests are cancelled. Source: Second Amended Chapter 11 Plan of Liquidation, Docket 717; SEC v. Terraform distributions page.
The estate's own forecast is in the Liquidation Analysis, filed as Exhibit B to the disclosure statement on August 8, 2024 (Docket 569-2). It projected gross distributable value of $184.5 million to $442.2 million, took off 5 to 10 percent for liquidation costs, and after administrative, secured, Beltran and general unsecured claims left $51.1 million to $394.2 million for Class 5 and below. Because the Crypto Loss Claim bar date hadn't run yet, the debtors declined to estimate the class's size and reported a recovery range of 0.1 percent to 100 percent.
Two of its assumptions haven't aged well. The high case valued the venture portfolio at 98.7 percent of a $98.8 million book value with no marketing process yet begun, and the SEC Settlement Fund at a full $204.3 million with PYTH priced between $0.27 and $0.34. The figures in the status section put the case near the bottom of that range.
Now, the SEC. Its judgment against Terraform comes to $3,586,875,883 in disgorgement, $466,952,423 in prejudgment interest and $420,000,000 in civil penalty, with Kwon jointly liable for a further $204,320,196 that he agreed to deliver to the estate in cash, LFG crypto and 500 million PYTH tokens. Because the SEC holds the Class 6 claim, it's paid only after Classes 4 and 5 recover in full. Whether the PYTH tokens have actually reached the trust, after a long dispute with the Pyth Data Association over transfer mechanics, isn't something the public record confirms. And PYTH trades at a price that can move any asset estimate in either direction.
Then there are the professionals. Fees are the largest cost line by a wide margin. After negotiated reductions, the fee examiner's final report lists Dentons at $19.8 million in fees plus $4.8 million in expenses for the SEC litigation, Weil above $19.2 million requested, and Alvarez & Marsal above $11.5 million.
In other words: the estate holds a small fraction of what it owes, spends several million dollars a quarter, and depends on litigation for anything beyond low single digits.
Every document below is on the Epiq docket at dm.epiq11.com/case/terraform, free of charge. Where a copy is also on CourtListener, the link goes there.
The trust has two cases in the field.
On December 18, 2025 it sued Jump Trading in the Northern District of Illinois for at least $4 billion. The claim: Jump secretly propped up UST's peg in May 2021 and took discounted LUNA and LFG reserves in return. On February 24, 2026 it sued Jane Street in the Southern District of New York over trading in the days before the May 2022 collapse.
Both defendants are fighting. Jump calls the suit an attempt to shift responsibility for Kwon's crimes. Jane Street calls it an effort to make it "foot the bill for a fraud that Terraform itself perpetrated," and argues that a wrongdoer's estate can't recover for its own fraud. If that defense succeeds, it reaches both cases.
Here's why these cases matter to you. Both are the estate's own actions, brought by the Plan Administrator and the Wind Down Trust, and any recovery flows into the pool that pays Class 4 and Class 5 claims. Jump and Jane Street also face lawsuits from other parties over the same 2021 and 2022 conduct, and those get reported under headlines that look identical. They're not estate assets. A plaintiff who wins a private suit recovers for themselves; nothing reaches the Crypto Loss Claim pool, and a ruling there doesn't move the trust's cases forward or back. So when Jump or Jane Street turns up in a Terra headline, ask one question: who's doing the suing?
Both defendants can litigate for years, the estate pays its lawyers from the same assets creditors are waiting on, and either case could end in zero. Any claim valuation that counts a Jump recovery as cash isn't reading the record. In other words, these cases are an option the estate pays to keep alive, not an asset. Their procedural status is in the status section.
Kwon's criminal case is over, and it changes nothing for creditors.
Montenegro extradited him on December 31, 2024. He pleaded guilty on August 12, 2025 to conspiracy and wire fraud, and on December 11, 2025 Judge Engelmayer sentenced him to fifteen years, with forfeiture of more than $19 million. Under the plea agreement, the government won't oppose his transfer to South Korea once he has served half the term.
Both the forfeiture and the $204.3 million transfer were already in the estate's numbers. So the sentence adds no new source of recovery.
A meaningful pro rata distribution needs a fixed denominator, and the denominator isn't fixed until the claims in individualized review and the outstanding information requests are resolved.
The Plan Administrator also has reasons to hold cash. The Jump and Jane Street cases need funding, and any fee award or counterclaim against the trust would have to be reserved for. The plan set a first wind-down deadline of December 31, 2025 and let the court extend it, which it has.
So what does a Terra creditor hold? A claim with a defined process, a small and shrinking pool, an unresolved litigation overlay, and a timeline measured in years.
Not yet, as of the date on the status section. The Wind Down Trust's quarterly post-confirmation report is the filing that shows distributions to creditors, and the latest one shows $0.
No. The bar date was May 16, 2025 at 11:59 p.m. ET. A supplemental late window closed on November 24, 2025, and the court has since denied further late-claim motions. The pool of filers is closed.
Not much that's encouraging. The Plan Administrator puts creditor claims above $5.5 billion against estate assets of about $100 million, before costs and before any litigation recovery. The 2024 Liquidation Analysis declined to estimate a Crypto Loss Claim recovery at all, reporting a range of 0.1 percent to 100 percent. And the Plan Administrator has warned that pro rata recoveries may be materially less than a claimant's Crypto Loss Amount. The current figures are in the status section.
Nobody knows. Both defendants can fund years of litigation, the estate pays its own legal costs from the same assets creditors are waiting on, and either case could end in zero. Where each case stands is in the status section.
No. The SEC holds the Class 6 claim under the confirmed plan, and it receives nothing until Class 4 general unsecured claims and Class 5 Crypto Loss Claims are paid in full.
No date has been set. The trust needs a fixed pool of allowed claims and a view on its lawsuits before it can distribute, and the court has already extended the wind-down deadline once. The current deadline is in the status section.
JTC (Cayman) Limited is the trustee. Todd R. Snyder of Piper Sandler is the Plan Administrator. Epiq handles the main docket and Kroll runs the Crypto Loss Claims portal. The Plan Administrator writes only from [email protected], [email protected], [email protected] and [email protected]. Treat anything else as phishing.
Turnpage Digital Markets LLC is not affiliated with, endorsed by, or acting for the court, the Wind Down Trust, the Plan Administrator, Epiq, Kroll, or any other party in In re Terraform Labs Pte. Ltd., No. 24-10070 (Bankr. D. Del.). Nothing here is legal or financial advice. Case status reflects the public record as of the date shown and may have changed.