{"id":452999,"date":"2022-05-26T08:51:49","date_gmt":"2022-05-26T05:51:49","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/insurace-says-it-will-pay-millions-to-claimants-after-terras-collapse\/"},"modified":"2022-05-26T08:51:49","modified_gmt":"2022-05-26T05:51:49","slug":"insurace-says-it-will-pay-millions-to-claimants-after-terras-collapse","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/insurace-says-it-will-pay-millions-to-claimants-after-terras-collapse\/","title":{"rendered":"# InsurAce says it will pay millions to claimants after Terra&#8217;s collapse"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ab5fb44a1a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ab5fb44a1a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/insurace-says-it-will-pay-millions-to-claimants-after-terras-collapse\/#%E2%80%9D_InsurAce_says_it_will_pay_millions_to_claimants_after_Terras_collapse_%E2%80%9C\" >&#8221; InsurAce says it will pay millions to claimants after Terra&#8217;s collapse &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_InsurAce_says_it_will_pay_millions_to_claimants_after_Terras_collapse_%E2%80%9C\"><\/span>&#8221; InsurAce says it will pay millions to claimants after Terra&#8217;s collapse &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvYzNhZGEyYzYtM2ZmZS00N2ZkLTliOWYtYWFlNDNmNzU0NTgxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>DeFi insurance protocol InsurAce says it was well within its rights to reduce the claims period for people affected by the Terra USD (UST) depeg event from 15 days to seven \u2014 but added it has already processed nearly all 173 submitted claims and will pay out $11 million.<\/p>\n<p>InsurAce (INSUR) is the third largest insurance provider for decentralized finance (DeFi) protocols, with a market cap of $15 million.<\/p>\n<p>On May 13, InsurAce caused a stir when it <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.insurace.io\/blog\/?p=2936\">announced<\/a> it had shortened the claims window for those with cover related to Anchor (ANC), Mirror (MIR), and stablecoin Terra USD (UST) following the collapse of the Terra (LUNA) layer-1 blockchain.<\/p>\n<p>But CMO Dan Thomson told Cointelegraph on Thursday that its move to shorten the claims window for the 234 covers of Terra portfolios was necessary to prevent further losses as UST had dropped to $0.08 by May 13, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/terra-usd\">CoinGecko<\/a>. He added:<\/p>\n<blockquote><p>\u201cIt is in our terms of service to make such changes. We felt there was no point in delaying the process on behalf of those who lost money and stakers who would have to pay out claims.\u201d<\/p><\/blockquote>\n<p>The move was controversial in the crypto community, some of whom suspected InsurAce was trying to reduce the amount of claims it would have to pay. Terra Research Forum member FatMan <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/FatManTerra\/status\/1528855581968433152\">told<\/a> his 52,000 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> followers on May 24 that InsurAce has made \u201cA dirty move,\u201d and the firm should not try to \u201cweasel out\u201d of its agreement with clients.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">A dirty move from <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/InsurAce_io?ref_src=twsrc%5Etfw\">@InsurAce_io<\/a> &#8211; setting an arbitrary &#8216;claim deadline&#8217; after which UST holders who bought depeg insurance cannot get their money back. I know you guys didn&#8217;t collect premiums for long, but this is how things work &#8211; a promise is a promise &#8211; don&#8217;t weasel out of it. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/5dYuN7hGOZ\">pic.twitter.com\/5dYuN7hGOZ<\/a><\/p>\n<p>\u2014 FatMan (@FatManTerra) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/FatManTerra\/status\/1528855581968433152?ref_src=twsrc%5Etfw\">May 23, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>But Thomson said that outside of those rejected, most of the 173 claims submitted have already been processed and that the protocol was ready to pay about $11 million to claimants. He added, <\/p>\n<blockquote><p>\u201cWe want the best for everyone here, but if this were traditional insurance, people would be stuck in litigation for months or years.\u201d <\/p><\/blockquote>\n<p>Thomson also suggested that the protocol may consider processing claims for the remaining 61 covers that haven&#8217;t been filed yet.<\/p>\n<p>The collapse of Terra and UST has attracted the attention of regulators across the globe with the legendary South Korea financial crimes unit the \u201cGrim Reapers of Yeoui-do\u201d resurrected to discover if any crimes had been committed by Kwon or the Luna Foundation Guard (LFG) which managed Terra\u2019s funds.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Korean watchdog begins risk assessment of crypto as Terra 2.0 passes vote<\/em><\/strong><\/p>\n<p>In the instance that the UST de-pegging was not just a protocol failure, Thomson pointed out that InsurAce may also have legal recourse. However, he said: \u201cI\u2019m sure Terra and LFG have bigger fish to fry, so that\u2019s a bridge we will cross when we get to it.\u201d<\/p>\n<p>INSUR is down 7.6% over the last 24 hours, trading at $0.28 according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/insurace\">CoinGecko<\/a>.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/insurace-says-it-will-pay-millions-to-claimants-after-terra-s-collapse\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; InsurAce says it will pay millions to claimants after Terra&#8217;s collapse &#8220; DeFi insurance protocol InsurAce says it was well within its rights to reduce the claims period for people affected by the Terra USD (UST) depeg event from 15 days to seven \u2014 but added it has already processed nearly all 173 submitted&#8230;<\/p>\n","protected":false},"author":1,"featured_media":453000,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvYzNhZGEyYzYtM2ZmZS00N2ZkLTliOWYtYWFlNDNmNzU0NTgxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74868,122378,70299],"class_list":["post-452999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-defi","tag-terra","tag-insurance"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/452999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=452999"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/452999\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/453000"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=452999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=452999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=452999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}