Asked in Bankruptcy, Small Claims and Stockbroker Fraud for Delaware

Q: Dear sir/madam can i as a crypto loss investor file form 410 general proof of claim in chapter 11 bankruptcy?

I suffered losses due to fraud/misleading related to Terraform labs (UST terra Stable coin)

In the case action there are 2 forms :

1. General proof of claim

2. crypto loss proof of claim

creditor classes: crypto loss claims (class 5) & general unsecured claims (class4). Thank You

1 Lawyer Answer
James L. Arrasmith
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Answered

A: You can file a general proof of claim form in a Chapter 11 bankruptcy case if you have suffered losses due to fraud or misleading actions related to Terraform Labs and the UST Terra stable coin. This form allows you to state the amount of your claim and the nature of your loss. Filing this form is important for being recognized as a creditor in the bankruptcy proceedings.

However, there is also a specific crypto loss proof of claim form available for individuals like you who have incurred losses specifically related to cryptocurrency investments. This form is designed to address the unique aspects of crypto-related losses and might provide a more detailed way to document your claim.

Given the creditor classes in the case—crypto loss claims (class 5) and general unsecured claims (class 4)—filing the appropriate form will help ensure your claim is accurately classified. It is important to choose the form that best represents your situation to ensure your claim is handled correctly in the bankruptcy proceedings.

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