Claim basics
Terra bonds: what you hold is a claim, not a bond
If you are looking for Terra bonds, what Terra creditors actually hold is a bankruptcy claim, not a bond. A loss in UST or LUNA filed with the Terraform Labs estate became a Crypto Loss Claim: it pays no interest, has no maturity date, and nobody has promised a fixed amount. The estate pays allowed claims a pro rata share of what it has, at a date not yet announced.
The word "bond" comes up mostly through translation. In Korean, the same word, 채권, is used for both a claim and a bond. In Chinese, 债权 (a claim) and 债券 (a bond) differ by one character and sound almost alike. So creditors often call their claim a "Terra bond", and some sellers do the same in English.
Facts checked
Claim or bond: the differences
A bond is a debt security with fixed terms. A Terra claim is a right to share in what a bankrupt company's estate has left.
| Feature | A bond | Your Terra claim |
|---|---|---|
| Who owes you | An issuer that promised to repay | The Terraform Labs estate, which is being wound down |
| Interest | Usually a fixed coupon | None |
| End date | A set maturity date | None. No distribution date has been announced |
| What you get back | The principal, if the issuer can pay | A pro rata share of the money available to Class 5 |
| Proof you hold it | A security in an account | Your entry on the Kroll claims register |
| How it changes hands | Traded through brokers and markets | By a written agreement, filed with the court under Rule 3001(e) |
The word that matters for a claim is allowed. Only a claim the Plan Administrator has allowed takes part in a distribution. See allowed claim and Crypto Loss Claim.
Why people say "Terra bonds"
Mostly language. Korean writes two different words, 債權 (a claim) and 債券 (a bond), the same way in Hangul: 채권. Chinese keeps them apart in writing, 债权 and 债券, but they sound almost the same. So a creditor who looks up 채권 or 债权 in English can easily land on "bond". Creditors in South Korea and Taiwan have their own guides.
There is also a crypto term. "Bonded" LUNA meant LUNA staked on the Terra network, and some derivatives carried the name, such as bLUNA. That is a token question, not a bond: see staked and bonded LUNA.
And there are no "TerraClaim bonds". TerraClaim does not issue or sell bonds. It runs a marketplace where creditors sell their Crypto Loss Claims to institutional buyers.
What your claim actually is
In the Terraform Labs bankruptcy, Case No. 24-10070, creditors who lost money in Terra ecosystem assets filed Crypto Loss Claims through Kroll at claims.terra.money. The Plan Administrator reviews each claim and sets an allowed amount in an Initial Determination.
Allowed claims sit in Class 5 and are paid pro rata, in US dollars, from the SEC Settlement Fund and whatever is left of the GUC Pool after Class 4, plus anything the estate's lawsuits recover. How much that will be, and when, is not known. Terra claim value explains why.
What you can do with a claim
You have two options. You can hold it and wait for a distribution: no date has been announced, and every claimant must pass identity checks before any payment. Or you can sell it: an institutional buyer pays you now and takes over the wait and the risk.
A sale is final and paid once: USDC within 24 hours of signing, often faster, or a bank wire sent within 24 hours (arrival depends on your bank). The buyer pays you directly, and sellers pay no fees. Start with how to sell your Terra claim, or weigh both paths in sell now or wait.