$4.47B
The SEC waits for investors
The SEC's claim is paid only after Classes 4 and 5 are paid in full. It has no share of the Class 5 pool.
Case No. 24-10070 · District of Delaware
The Terra Bankruptcy Waterfall
Who gets paid, and in what order, in the Terraform Labs bankruptcy. Select a step to see the details and the court filing behind each number.
Money fills each step before it flows to the next.Hover, click or use ↑ ↓
Three things the plan says
Second Amended Plan, Dkt. 717, confirmed Sept. 20, 2024
$83.5M to $85M
What Kwon's settlement is worth today
Kwon paid his $204.3M SEC settlement in kind, mostly in tokens, into a fund reserved for Class 5. At today's prices, it is worth about $83.5M to $85M, not $204.3M.
Class 4 first
Class 4 is paid before Class 5
For estate cash, Crypto Loss Claims receive what is left of the GUC Pool once Class 4 is paid in full.
Class 5: the money, and the claims that share it
What the public filings show
Your allowed claim×
Crypto Loss Claim PoolAll allowed Crypto Loss Claims
1
The money
Two sources. The trust has not published a current balance for either.
SEC Settlement Fund
Kwon settled with the SEC for $204.3M and paid in kind, mostly in tokens. Their value has fallen since 2024: at today's prices, the fund is worth about $83.5M to $85M, not $204.3M.
Kwon's settlement$204.3M
Worth at today's prices$83.5M to $85M
July 2024Today
500,000,000 PYTH
about $180M
$31M to $32.5M
1,973,554 AVAXLuna Foundation Guard
about $63.2M
$45.5M, sold
Cash
$7.0M
$7.0M
Value of the fund at today's prices$83.5M to $85M
AVAX: the Avalanche Foundation contested the transfer and bought the tokens back, approved Oct 2024. PYTH: transferred to the trust under a 2025 court order. Sales, if any, not published. Today's PYTH price: about $0.062 to $0.065 on Nov 2, 2026.
What is left of the estate
Class 5 also receives what is left of the GUC Pool, once costs are covered and Class 4 is paid in full. The Disclosure Statement lists the estate's assets at July 2024 values.
- Cash burn: spent by the trust, Oct 2024 to Sep 2026−$65.2M−$5.6M in the last reported quarter, Jul to Sep 2026.
- Paid to unsecured and crypto loss creditorsNone reported
- Class 4 claims, paid firstNot published
- Balance held by the trust todayNot published
−$18.4M
−$11.1M
−$7.9M
−$5.8M
−$5.9M
−$3.6M
−$6.9M
−$5.6M
Total cash disbursements reported by the trust each quarter, Dkt. 997 to Dkt. 1376.
Miscellaneous, not counted as assets: possible recoveries from preference actions, third-party settlements and assets found later. Pursuing them costs money up front, and any recovery is uncertain.
2
The claims
Every allowed Crypto Loss Claim, in dollars.
$5B+
Crypto loss claims cited by Piper Sandler, which serves as Plan Administrator of the Wind Down Trust (May 2025). This is the amount claimed. The allowed total has not been published.
No percentage is shown here: the claims agent says the recovery rate cannot be determined yet. Kroll FAQ
Where it stands
October 2026
Claims review
Initial decisions went out from August 2025. Final decisions have started.
Distributions
No date announced. Paid in U.S. dollars after identity checks.
Cash burn
−$5.6M last quarter, −$65.2M since Oct 2024. Nothing reported paid to creditors in Classes 4 and 5.
Questions Terra creditors ask
What is the Terraform Labs distribution waterfall?
It is the order in which the Terraform Labs Wind Down Trust pays claims under the confirmed Chapter 11 plan (Dkt. 717). Cash first refills the trust's reserves, then pays secured and priority claims, then general unsecured claims (Class 4). What remains goes to Crypto Loss Claims (Class 5), together with the SEC Settlement Fund. The SEC claim (Class 6) comes after Classes 4 and 5.
Does the SEC get paid before Terra investors?
No. The SEC claim is allowed at $4,473,828,306, but Plan §4.6(b) provides for no distributions on it unless Classes 4 and 5 are satisfied in full. Payments to those classes count toward the SEC judgment.
Are Crypto Loss Claims paid after general unsecured claims?
For estate cash, yes. Under Plan §§1.40 and 1.70, the GUC Pool is released to the Crypto Loss Claim Pool only once Class 4 is paid in full. Class 5 also receives the SEC Settlement Fund, which the plan reserves for holders of Allowed Crypto Loss Claims alone (§1.107).
Is there $204.3M in the SEC Settlement Fund?
No. Do Kwon's $204.3M SEC settlement was paid in kind: about $7M of cash, the Luna Foundation Guard's 1,973,554 AVAX and 500,000,000 PYTH. The AVAX were sold for $45.5M. The PYTH, valued at about $180M in July 2024, are worth about $31M to $32.5M at Nov. 2, 2026 prices. In total, the fund is worth about $83.5M to $85M at those prices, and it is reserved for Crypto Loss Claims.
How much is claimed in Terra Crypto Loss Claims?
Piper Sandler, which serves as Plan Administrator of the Wind Down Trust, cites $5B+ of crypto loss claims (May 2025). That is the amount claimed. The total allowed dollar amount has not been published, and the claims agent says the recovery rate cannot be determined yet.
When will Terra Luna creditors be paid?
No distribution date has been announced. The trust reported $0 paid to unsecured claims through September 30, 2026 (Dkt. 1376). Claims are still being decided, and payments will be in U.S. dollars after identity checks (Kroll CLC FAQ).
Is Do Kwon's criminal forfeiture part of the waterfall?
No. In his criminal case (S.D.N.Y. 23 Cr. 151), the government said forfeited assets go through its own remission process, separate from the bankruptcy (ECF 60). What Kwon contributes comes from his SEC settlement instead, paid in kind into the SEC Settlement Fund.
Can a Terra Crypto Loss Claim be sold?
Yes. Claims are transferable, and each transfer is recorded on the bankruptcy docket through a notice under Bankruptcy Rule 3001(e). TerraClaim operates a marketplace for Terraform Labs Crypto Loss Claims.
All 10 classes in one table
| Class | Who | Treatment under the plan | Plan |
|---|---|---|---|
| Unclassified | Administrative, fee and priority tax claims | Paid in full (tax claims may be paid over up to five years) | §§2.1 to 2.5 |
| 1 | Priority non-tax claims | Paid in full in cash | §4.1 |
| 2 | Other secured claims | Paid in cash, otherwise left unimpaired, or collateral returned | §4.2 |
| 3 | Beltran allowed secured claims | Paid from the Beltran escrow; any excess becomes a Crypto Loss Claim | §4.3 |
| 4 | General unsecured claims | Pro rata share of the GUC Pool, up to payment in full | §4.4 |
| 5 | Crypto Loss Claims | Share of the Crypto Loss Claim Pool under the claims procedures | §4.5 |
| 6 | SEC claim | Allowed at $4,473,828,306; nothing until Classes 4 and 5 are paid in full | §4.6 |
| 7 | Intercompany claims | Reinstated or cancelled | §4.7 |
| 8 | Intercompany interests | No recovery | §4.8 |
| 9 | 510(c) subordinated claims | Expunged | §4.9 |
| 10 | Terraform equity interests | Shares kept but diluted; no distribution expected | §4.10 |
Sources (court filings and official pages)
- Second Amended Chapter 11 Plan of Liquidation, Dkt. 717; confirmation order, Dkt. 734 (Sept. 20, 2024); Effective Date Oct. 1, 2024.
- Crypto Loss Claims bar date order, Dkt. 965, and CLC Procedures; bar date extended to May 16, 2025, Dkt. 986.
- Notice of Initial Determinations, Dkt. 1051 (Aug. 13, 2025).
- Dentons final fee order, Dkt. 1196 (Apr. 2, 2026).
- Wind Down Trust post-confirmation reports, quarterly from Dkt. 888 (amended by Dkt. 997) to Dkt. 1376, the report for the quarter ending Sept. 30, 2026 (filed Oct. 21, 2026).
- Objection to a Final Determination, Dkt. 1382 (Oct. 27, 2026).
- Kroll, Crypto Loss Claims register and CLC FAQ; docket on Epiq.
- SEC v. Terraform Labs and Do Hyeong Kwon, S.D.N.Y. 1:23-cv-01346: final judgment, ECF 273; SEC 2024-73; harmed investors page.
- United States v. Kwon, S.D.N.Y. 23 Cr. 151: DOJ, ECF 60.
- Beltran escrow: [2025] SGHC(I) 18.
- Piper Sandler, Terraform Labs transaction page (May 2025).
- Law360, court approval of the $45.5M AVAX deal (Oct. 31, 2024).
- Disclosure Statement as filed July 24, 2024, Dkt. 502 (estate assets at July 2024 values; AVAX and PYTH under Kwon's SEC settlement).
- PYTH price on Nov. 2, 2026: CoinGecko, CoinMarketCap.
- Plan Administrator's motion on Beltran cost awards, Dkt. 1321 (Aug. 19, 2026).
- Plan Administrator, terraformlabsplanadministrator.com (order directing transfer of 500 million PYTH to the trust).
This page summarizes public court filings in In re Terraform Labs Pte. Ltd., No. 24-10070 (BLS) (Bankr. D. Del.), and related cases. It is for information only, not legal, tax or investment advice, and not an estimate of any recovery. The plan and court orders control. TerraClaim LLC operates a marketplace for Terraform Labs Crypto Loss Claims.
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