Terra Classic LUNC

What the record shows

Terraform Labs issued coins on the Terra blockchain. LUNA was the chain’s native token, and TerraUSD (UST) was a stablecoin meant to hold a value of $1 [1]. In May 2022 UST and LUNA crashed. The DOJ’s summary of the allegations in the case puts investor losses at over $40 billion [1].

The SEC sued Terraform and its co-founder on February 16, 2023 [2]. On December 28, 2023 the court ruled on summary judgment that they had made unregistered offers and sales of LUNA and one other token [3]. On April 5, 2024 a jury found both liable for securities fraud [2] [3].

The court signed a final consent judgment on June 12, 2024, and the clerk entered it on June 13, 2024 [3]. Terraform and its co-founder agreed to pay more than $4.5 billion. Terraform also agreed to wind down and pay out what it had left to investors and creditors through its bankruptcy plan [2]. All parties waived any appeal [3].

In the criminal case, the co-founder pleaded guilty on August 12, 2025 to wire fraud and to a conspiracy to commit commodities, securities, and wire fraud [1] [4]. On December 11, 2025 he was sentenced to 15 years in prison and ordered to forfeit over $19 million [5]. The court entered judgment on December 12, 2025 [4].

What the chain shows

No block-explorer page for the Terra Classic chain rendered as text when this entry was written, so this page states no chain fact. The claims schedule of the Terraform wind-down trust lists the coin as uluna, in the column where other tokens show an address, under the name Terra LUNA Classic (LUNC) [6]. It lists uusd as TerraClassic USD (USTC) [6].

The SEC and DOJ documents use the names LUNA and UST. The trust’s glossary says UST lost its peg in May 2022 and that the price of Luna Classic fell with it [7]. It also treats Luna 2.0, the native token of a newer Terra 2.0 chain, as a separate coin [7].

Claims and distributions

Terraform filed for chapter 11 bankruptcy in Delaware on January 21, 2024 [2]. On March 12, 2025 the bankruptcy court set a bar date for Crypto Loss Claims, on which the company’s wind-down trust is to distribute, and after an extension it fell on May 16, 2025 [8]. The bar date has passed. A later claim needs relief from the court on a motion, which the plan administrator may oppose [8].

The trust’s post-bar-date FAQ says its online portal closed for submissions on November 25, 2025 [9]. The FAQ also says the recovery percentage cannot be determined yet, and that the plan administrator will send distribution details later [9]. Conflict ledger row 27 records the difference between the portal date and the bar date. This page states no distribution date or amount.

In the criminal case, the court granted the government’s motion for a finding that restitution is impracticable [4]. The DOJ says remission for victims will be available only once property in the case has been finally forfeited, and it gives no date [10].

Tax treatment

The judgments do not create a loss. A loss needs a closed transaction. The IRS Chief Counsel memo on crypto that has crashed says a token that still trades on an exchange is not worthless, and a holder who still controls it has not abandoned it [11]. The memo reads a worthlessness loss for an individual as a miscellaneous itemized deduction, and the statute now allows none of those for any tax year after 2017, with no end date [12].

A sale is different. The IRS FAQ says a sale of virtual currency for real currency is a capital gain or loss, reported on Form 8949 and summarized on Schedule D [13]. The trust’s FAQ says its distributions include no tax considerations, and that each claimant is responsible for any tax due on one [9]. This site has not checked how a trust distribution is taxed against a primary source.

What a holder can do

The recover-or-write-off table further down lists three things a holder can do with what is left. None of them is a recommendation. Each one produces a different receipt, and the IRS reads the receipt.