Claim outcomes
Terra claim expunged or disallowed: what it means and what you can do
An expunged or disallowed claim is one the Plan Administrator has decided not to allow. As it stands, it shares in no distribution from the estate. If that decision came in your Initial Determination, it is not the end of the road: you can dispute it within the deadline that applies to you.
This guide explains the common reasons in general terms, what you can still do, how to get a free review of whether a challenge is worth it, and why an expunged claim cannot be sold. The live register figures below show how many claims are expunged today.
Facts checked
Expunged, reduced or withdrawn: the differences
In plain terms, expunged and disallowed describe the same outcome for you: the claim, as filed, gets nothing. The glossary entry has the short definition. Two other outcomes are easy to confuse with it.
| Outcome | What it means | What you can do |
|---|---|---|
| Expunged or disallowed | The claim was not allowed | Dispute it within your deadline, if you have grounds |
| Allowed for less | The claim was allowed, but for less than you asserted | Accept it and keep or sell it, or dispute the amount |
| Withdrawn | The claim was withdrawn | If you did not mean to withdraw it, contact Kroll |
If your claim was allowed for less rather than expunged, read what the allowed amount means instead.
Common reasons, in general terms
Your notice and your own records are the place to start. In general terms, claims are expunged or disallowed for reasons like these:
- Duplicates. The same loss was claimed more than once. One claim is expunged while another may stand, so check every claim number you hold.
- No eligible loss. The holdings are not on Schedule I, the list of eligible loss cryptocurrencies, or the records show no loss under the plan's method.
- Missing information. Kroll asked for more evidence and did not receive it, or not in time. 5,285 claimants were asked (Dkt. 1392).
- Evidence that did not support the claim. The records sent could not be matched to the holdings claimed.
What you can still do
- Find your deadline. Upload your notice to Second Look to get your dispute deadlines and email reminders.
- Check for a duplicate. Log in to claims.terra.money and look at every claim you hold. If another claim for the same loss is Allowed, that is the claim to follow.
- Gather your evidence. Exchange statements, wallet addresses and transaction histories that show the holdings and the loss.
- Get the free review. Second Look tells you whether a challenge looks worth it.
- Dispute, if it is worth it. There are 30 days to dispute and 60 days to submit evidence, both from receiving the Initial Determination. Then a Final Determination: 30 days to dispute it in the portal, and 90 days from receiving it to object in court. How disputes work.
If your deadline has passed, ask Kroll and your own counsel right away. Do not pay anyone who promises to get your claim reinstated.
What Second Look is, and what it is not
Second Look is a TerraClaim service for claimants who disagree with their determination. You upload your Notification of Initial Determination. You get the deadlines that apply to you, email reminders before they pass, and a free review of whether a challenge is worth it.
You would not be the only one to challenge: 9.9% of Initial Determinations are disputed, and the first Final Determinations have been issued; some claimants have objected to theirs in court (Dkt. 1392). Second Look is not legal representation, and TerraClaim is not a law firm. For an objection in court, ask your own counsel.
Can an expunged claim be sold?
No. A buyer prices a claim from its allowed amount, and an expunged claim, as it stands, has no allowed amount. TerraClaim handles Allowed claims only. If a dispute later restores the claim and it becomes Allowed, it can be sold then.
Be wary of anyone who offers to buy an expunged claim, or to recover it, in exchange for an upfront fee. On TerraClaim, sellers pay no fees, and a real sale ends with a filing on the court docket. Is selling a Terra claim safe lists the red flags.