Terraform Labs, the crypto firm behind the collapsed TerraUSD stablecoin and Luna token, will launch a claims portal on March 31 to allow investors to file for potential recovery tied to the company’s 2022 implosion.

Collapsed cryptocurrency exchange FTX is set to start paying its major creditors at the end of May using a cash reserve of $11.4 billion.

The Federal Deposit Insurance Corporation (FDIC) said that banks no longer need prior approval to engage in crypto-related activities. 

Top stories in the Crypto Roundup today:

• Terraform Labs to Open Investor Claims Portal Amid Bankruptcy Wind-Down
• FTX to Begin Repaying Major Creditors in May Using $11.4B Cash Reserve
• FDIC Drops Pre-Approval Requirement for Banks Entering Crypto Activities

Terraform Labs to Open Investor Claims Portal Amid Bankruptcy Wind-Down

Terraform Labs, the crypto firm behind the collapsed TerraUSD stablecoin and Luna token, will launch a claims portal on March 31 to allow investors to file for potential recovery tied to the company’s 2022 implosion.

The online system—managed by claims administrator Kroll—is part of the firm’s court-approved bankruptcy process. Investors have until April 30 at 11:59 p.m. ET to file claims at claims.terra.money. Any submissions after the deadline will be rejected.

Claims must relate to a select list of eligible cryptocurrency held during the crash period. Assets with low liquidity, including the relaunched Terra 2.0's Luna token, are excluded. 

The Terra ecosystem collapse wiped out over $40 billion in market value within days, shaking investor confidence and triggering wider scrutiny of algorithmic stablecoins.

FTX to Begin Repaying Major Creditors in May Using $11.4B Cash Reserve

Collapsed cryptocurrency exchange FTX is set to start paying its major creditors at the end of May using a cash reserve of $11.4 billion.

The company, which filed for Chapter 11 bankruptcy in November 2022, will begin distributing funds to large creditors on May 30, bankruptcy attorney Andrew Dietderich told a Delaware judge overseeing the case. These payments will go to institutional clients and individual investors who lost substantial amounts when FTX’s trading platform collapsed.

Smaller creditors—those with so-called “convenience claims”—have already started receiving payments. Distributing funds to the main pool of claimants has taken longer due to the complexity and sheer volume of claims. Dietderich said the company faces what he described as “27 quintillion” claims, though most are flawed or duplicative.

FTX lawyers are now sorting through “billions” of potentially invalid claims. The goal, Dietderich said, is to pay legitimate creditors quickly, especially since the interest on the firm’s cash holdings is lower than the 9% interest accruing on the owed amounts.

FDIC Drops Pre-Approval Requirement for Banks Entering Crypto Activities

The Federal Deposit Insurance Corporation (FDIC) said that banks no longer need prior approval to engage in crypto-related activities. 

Under the new guidance, these institutions can participate in legally permitted crypto activities—such as custody, tokenized asset offerings or blockchain settlement systems—without first clearing those plans with the agency. The key condition is that banks must properly manage any risks tied to those services.

“The FDIC is turning the page on the flawed approach of the past three years,” said acting Chairman Travis Hill in a statement. He added that more guidance would follow to help banks understand how to operate responsibly in the crypto sector.

The FDIC’s shift comes days after the Office of the Comptroller of the Currency made a similar move, signaling growing comfort among regulators with banks handling digital assets—so long as basic safety checks are in place.

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