SEC v. Terraform Labs PTE, Ltd. and Do Hyeong Kwon, No. 23-cv-1346-JSR (S.D.N.Y.)
Phishing Attempt
Creditors are receiving phishing emails from donotreply@ra-kroll.com purporting to be from Kroll, the Plan Administrator’s notice and claims agent. The phishing emails seek wallet details and other information, falsely claiming that information is needed to complete Crypto Loss Claim submissions. These emails are not authorized and are likely a phishing scam. The only valid website domains for the submission of Crypto Loss Claims are claims.terra.money and https://register-terra.issuercloud. com. Valid e-mails from Kroll use the domain “ra.kroll.com”—not “ra-kroll.com.” As stated in the crypto loss procedures: “All submissions of personal information and evidentiary support requested in the CLC Form will occur via the Online Portal.”
Any requests via email for wallet details or other information should be viewed as suspicious and potentially fraudulent.
Investors harmed by Terraform Labs PTE, Ltd.’s (“Terraform”) and Do Hyeong Kwon’s (“Kwon”) years-long fraud involving crypto asset securities, described in the Commission’s amended complaint have asked the Commission about their ability to receive compensation in light of the outcome in the Commission’s action against Terraform. Below is information intended to help answer those questions and contact information for questions related to the distribution process, which will be handled through Terraform’s bankruptcy case.
Terraform Claim Process – Exclusive Means of Victim Recovery
On March 12, 2025, the U.S. Bankruptcy Court for the District of Delaware issued an Order setting the bar date for filing Proofs of Claim on account of Crypto Loss Claims, approving the form of and manner for filing Proofs of Claim, approving the Form and Manner of Notice thereof, and approving the related proceedings (the “CLC Procedures Order”). Please see the CLC Procedures Order.
The Online Portal is the exclusive means for filing victim loss claims. It was made available as of approximately March 31, 2025, at https://claims.terra.money/
On April 8, 2025, the Plan Administrator filed a notice extending the Claims Bar Date until May 16, 2025. Accordingly, all proofs of claim on account of Crypto Loss Claims must be filed so that they are received on or before May 16, 2025, at 11:59 p.m. (prevailing Eastern Time) by the Plan Administrator’s notice and claims agent, Kroll, through the Online Portal. Proofs of claim received after this date and time will be barred from asserting such claims against the Debtors and receiving a distribution.
Directions for filing claims and access the online portal for filing of claims at https://claims.terra.money/. You may also direct any questions regarding the process by contacting the Plan Administrator at terraclaims@psc.com.
Bankruptcy Case Information
On June 12, 2024, the U.S. District Court for the Southern District of New York approved a final consent judgment (“Final Judgment”) against Terraform and Kwon. Below are key terms of the settlement and upcoming deadlines in Terraform’s bankruptcy case:
- Terraform owes $4,473,828,306 in disgorgement, prejudgment interest, and civil penalties. The payments will be “deemed satisfied” by payments to harmed investors and creditors through Terraform’s pending bankruptcy case, In re Terraform Labs Pte. Ltd., Case No. 24-10070 (Bankr. D. Del.). The Commission will not receive any payments unless and until investors and creditors are paid in full in the bankruptcy case.
- The Final Judgment requires Kwon to transfer at least $204,320,196 to the Terraform bankruptcy estate for distribution to harmed investors, including $7 million in cash, all crypto assets of the Luna Foundation Guard, and Kwon’s PYTH crypto asset tokens.
- On September 20, 2024, the bankruptcy court approved a liquidating Chapter 11 plan in Terraform’s bankruptcy cases, which established a liquidating trust to liquidate Terraform’s remaining assets and pursue causes of action for the benefit of Terraform’s creditors and harmed investors in Terraform’s crypto asset securities.
- The Chapter 11 plan and related documents set out the recovery rights for all creditors and harmed investors.
- The liquidation of Terraform is overseen by Todd Snyder who may be contacted at terraclaims@psc.com
The following website has information regarding the claims process and the online portal: https://claims.terra.money/. You may also send questions to the Plan Administrator at terraclaims@psc.com
Contact Information
- Investors can contact the SEC at ENFTerraInvestors@sec.gov.
- An Official Committee of Unsecured Creditors (“Committee”) has been appointed in the Terraform bankruptcy case and is represented by McDermott Will & Emery LLP. The Committee can be contacted at TerraClaims@mwe.com.
- Terraform is represented in the bankruptcy case by Weil, Gotshal & Manges LLP, which can be contacted at TerraformLabs@epiqglobal.com.
Documents
Last Reviewed or Updated: April 10, 2025