Terra Luna Bankruptcy Claim Recovery: How Much Will You Get?

Overview: Where Terra Luna Claim Recovery Stands Right Now

PAXTIBI's working estimate is approximately 5% of allowed Terra Luna claim value. This is an estimate, not an official recovery percentage. Terraform Labs was a software developer rather than an exchange holding customer balances; recovery depends on available assets, costs and the final allowed claims pool.

The Wind Down Trust's Q2 report covers the quarter ending June 30, 2026 and was filed on July 30, 2026 (D.I. 1307). Part 3 shows $0 paid to general unsecured claims and does not separately identify Crypto Loss Claim payments. Its notes warn that some zero entries mean unknown, not yet determined or not applicable. The report alone therefore does not conclusively establish that Crypto Loss Claim holders received nothing. Total allowed claims and anticipated plan payments remained undetermined.

Q2 2026 Wind Down Trust report — D.I. 1307

What the July 2026 Kroll Emails Actually Mean

Kroll's July 24, 2026 email confirmed an Allowed Crypto Loss Claim. It was not a payment notice and did not require action in response. The Crypto Loss Amount is the recognized claim amount, not the amount you will receive. Check later notices for any new requirements or payment instructions.

The amount available for distribution depends on claims review, asset recoveries and costs, and may be materially less than the Crypto Loss Amount.

This is a meaningful procedural milestone. Per the Third Status Update filed February 17, 2026, approximately 16,640 Crypto Loss Claim forms were submitted. Of those, 8,449 claimants had received initial determinations, about 87% of those determinations had been accepted, 3,129 claims were in Individualized Review, and 3,760 claimants had received requests for additional information. Moving to Allowed status means your claim is now a fixed number in the denominator, which is required before any pro rata share can be calculated.

An allowance notice does not establish a payment date.

How Much Will Terra Luna Creditors Recover?

The recovery arithmetic is a small numerator divided by a very large denominator, and both sides are visible on the public docket.

On the asset side, an earlier operating report disclosing the asset base showed approximately $212.5 million available for creditors excluding intercompany items: roughly $76.5 million of cash, $103 million of venture investments, and $33 million of prepayments. The estate's own liquidation analysis values that venture portfolio far below carrying value, at $17.6 million to $97.5 million, and the prepayments at $0 to $4 million.

Two recoveries sit on top of that. The Plan Administrator obtained an order directing the transfer of 500 million PYTH tokens to the Wind Down Trust, proceeds ringfenced for Crypto Loss Claims and worth roughly $50 million at the time of receipt. Approximately $44 million of the Beltran class action escrow is expected to return to the estate, with no published release timeline.

Separately, the SEC final judgment in SEC v. Terraform Labs Pte. Ltd. and Do Hyeong Kwon requires Do Kwon to transfer at least $204,320,196 of value to the bankruptcy estate for distribution to harmed investors. Realising that obligation depends on execution against assets that are themselves disputed.

The Q2 2026 report records $59,605,675 in total cash disbursements since the plan's effective date, including $6,910,548 in the quarter. These are total disbursements, not a professional-fee total. Separately, Part 2 reports $18,006,113 paid against $20,566,947 approved for preconfirmation professional fees and expenses. Continuing wind-down and litigation costs reduce funds available for creditors; the report is unaudited and is not a current asset valuation.

On the liability side, the SEC fixed Terraform's obligation at $4,473,828,306 in disgorgement, prejudgment interest and civil penalties. The SEC agreed to subordinate its own recovery so that nothing flows to the Commission until creditors are paid, but the figure establishes the scale of the loss. The Disclosure Statement discloses an official recovery band of 0.1% to 100%, a range too wide to help creditors plan.

Netting the realistic numerator against a claim pool measured in billions is what produces a mid single digit outcome. There is a real floor from cash and ringfenced PYTH proceeds, and there is genuine optionality above it. There is no plausible path to par.

Why Terra Luna Is Not FTX

FTX creditors are being repaid above 100% of their claim value. Terra Luna creditors are looking at cents on the dollar. The difference is not process quality or administrator competence. It is the structure of what collapsed.

FTX was an exchange that held customer assets and, using customer money, made investments that later appreciated substantially, including Anthropic, SpaceX, Robinhood, Bitcoin and Solana. The estate had things to sell.

Terraform Labs held nothing comparable. In a July 2023 sworn declaration filed in the FTX case, Terraform's then-CEO Chris Amani stated that TFL was a Singaporean open-source software development firm and did not operate a market or hold customer funds. A Terra Luna claim is a damages claim against a software company, not a custodial claim against a broker.

The comparison matters because the two estates have different assets and liabilities. FTX recovery percentages are not a reliable benchmark for a Terra Luna claim.

Where Additional Recovery Could Come From

Potential additional recoveries include the Jump Trading and Jane Street lawsuits and collection of the existing Do Kwon judgment. Lawsuit allegations and an enforceable judgment are different stages of recovery.

1. Jump Trading. On December 18, 2025, the Plan Administrator filed suit against Jump Trading, Jump Crypto Holdings, Kanav Kariya and William DiSomma in the Northern District of Illinois, seeking at least $4 billion. The complaint alleges a secret arrangement to prop up the UST peg and the fraudulent transfer of roughly 50,000 BTC from the Luna Foundation Guard to Jump. Jump has called the suit baseless and says it will defend vigorously.
2. Jane Street. On February 23, 2026, the Plan Administrator sued Jane Street Group, Jane Street Capital and individual defendants Bryce Pratt, Robert Granieri and Michael Huang in the Southern District of New York, alleging insider trading and market manipulation. Jane Street denies the allegations and attributes investor losses to fraud by Terraform's own management.
3. The Do Kwon receivable. Kwon's $204.3 million obligation is the most estimable of the three because it is a consented money judgment attached to identified assets, not a contested tort claim. It is also exposed to collection risk. Kwon was sentenced to 15 years in prison in December 2025.

Three Arrows Capital's $1.3 billion claim was settled in October 2025, with the Bankruptcy Court classifying 3AC's losses as a Crypto Loss Claim. More precisely, the October 7 order (D.I. 1117) approved an agreement to pursue the asserted claim through the Crypto Loss Claims process. It did not allow a fixed $1.3 billion amount or guarantee payment. Any amount ultimately allowed shares the priority of other Crypto Loss Claims, subject to the agreement's reservations.

3AC stipulation and approval order — D.I. 1117

Status review: October 14, 2026. We could not verify a complete, current docket for both the Jump Trading case (N.D. Ill., 1:25-cv-15414) and the Jane Street case (S.D.N.Y., 1:26-cv-01536). We therefore cannot confirm that neither court has ruled on the merits. The complaints contain allegations, and potential recoveries should not be treated as guaranteed proceeds.

Plan Administrator: litigation and creditor information

Jump Trading court docket (PACER)

Jane Street court docket (PACER)

What Litigation Costs Do to a Small Estate

The Q2 2026 report records $59,605,675 in total cash disbursements since the plan's effective date, including $6,910,548 in the quarter. These are total disbursements, not a professional-fee total. Separately, Part 2 reports $18,006,113 paid against $20,566,947 approved for preconfirmation professional fees and expenses. Continuing wind-down and litigation costs reduce funds available for creditors; the report is unaudited and is not a current asset valuation.

Litigation costs reduce net recoveries. Any proceeds depend on the outcome and collection, while the amount ultimately allowed for 3AC affects the pool shared with other Crypto Loss Claim holders. No fixed litigation duration or recovery is guaranteed.

Q2 2026 Wind Down Trust report — D.I. 1307

Who Qualified as a Terra Luna Creditor, and Who Did Not

Eligibility in this case was narrower than in any other major crypto bankruptcy, and the reasons were technical rather than discretionary.

Recovery is limited to Eligible Loss Cryptocurrency: coins actually locked on the Terra ecosystem or rendered worthless by the second de-peg. Claimants generally had to prove wallet ownership cryptographically by signing a transaction, or supply a read-only exchange API key. Centralized exchange positions frequently fell outside the eligible definition, and creditors who lost access to self-custody wallets could not satisfy the proof requirement. Manual evidence such as screenshots or statements routed a claim into Individualized Review rather than the expedited track.

The bar date has closed. Claims were due May 16, 2025 following one extension; a reopened late-claim window ran from October 1 to November 24, 2025; and on April 16, 2026 the court granted an omnibus objection denying a further batch of late-claim motions. Relief now requires filing a motion on the docket, which the Plan Administrator may oppose.

Terraform Labs is, as far as we are aware, the first bankruptcy of a blockchain itself. The eligibility architecture reflects that novelty, and its practical effect was to exclude a large share of the people who lost money in May 2022.

Immediate Liquidity on Your Terra Luna Claim

PAXTIBI provides upfront liquidity on Terra Luna Crypto Loss Claims while allowing claimants to retain participation in future recoveries. Rather than buying claims at a deep discount and capturing all the upside, we structure transactions closer to fair value with a share of eventual distributions flowing back to the original creditor.

• 1,000+ creditors served across the FTX, Genesis, Terra Luna, Mt Gox and smaller processes
• $100M+ notional traded in crypto bankruptcy claims
• 12+ jurisdictions covered, including creditors blocked from standard distribution channels
• Senior response within 24 hours, from the team that executes the transactions

We are direct buyers, not brokers, so there is no waiting for a match and no intermediary fee. Our founders, Alberto Visona and Federico Natali, were themselves creditors of both FTX and Terra Luna before building this business, which is why the process is designed around what creditors actually find painful.

Our completed Terra Luna claim transfers are a matter of public record. You can verify them by searching "paxtibi" on the Terraform Labs CLC portal.

PAXTIBI's working estimate remains a mid single digit recovery, subject to costs, litigation outcomes and the final allowed claims pool. We can review your Allowed CLC Amount and propose written purchase terms, including any participation in future recoveries.

Frequently Asked Questions