According to BlockBeats, the collapse of Terra's LUNA and UST in mid-2022 resulted in a $40 billion loss for global investors. Terraform Labs and its founder, Do Kwon, reached a civil settlement with the U.S. Securities and Exchange Commission (SEC) in June, agreeing to pay fines of $4.47 billion and $200 million, respectively. However, the timeline for compensating affected investors remains unclear.On the 26th, the SEC released a notice addressing compensation for investors and creditors affected by Terraform Labs. The SEC clarified that compensation would be handled through the ongoing bankruptcy case of Terraform Labs. The company filed for Chapter 11 bankruptcy protection in Delaware in January, with estimated assets and liabilities between $100 million and $500 million, and 100 to 199 creditors.The SEC explained that Terraform Labs would seek approval for a Chapter 11 liquidation plan, which would establish a liquidation trust or property representative to distribute the remaining assets to creditors and investors harmed by Terraform's crypto asset securities, such as LUNA. The court's final judgment ordered Terraform to pay $4.47 billion in illicit gains, pre-judgment interest, and civil penalties. Do Kwon is required to transfer at least $204 million to Terraform's bankruptcy estate, including $7 million in cash and all crypto assets of the Luna Foundation Guard.The SEC emphasized that it would not receive any payments until investors and creditors are fully compensated. The bankruptcy plan, expected to be finalized in the fall of 2024, will outline the rights of creditors and affected investors. They will have the opportunity to review and vote on the disclosure statement and liquidation plan. The bankruptcy court has yet to determine the procedures and deadlines for submitting fraud-related loss claims against Terraform, but information will be posted on the following website once the plan is approved: https://dm.epiq11.com/case/terraform/info.As for LUNA's market performance, the token has seen a significant decline. After reaching $0.83 at the end of May, LUNA's price has dropped to $0.385, a nearly 70% decrease from its yearly high of $1.26.
