InsurAce states that it was well within its rights to reduce the claims period for people affected by the Terra USD (UST) de-peg event from 15 days to seven but added it has already processed nearly all 173 submitted claims and will pay out $11 million.
InsurAce is the third largest insurance provider DeFi protocols, with a market cap of $15 million.
Recently InsurAce announced it had shortened the claims window for those with cover related to Anchor, Mirror, and stablecoin Terra USD (UST) following the breakdown of the Terra (LUNA) layer-1 blockchain.
CMO Dan Thomson has stated that its move to reduce the claims window for the 234 covers of Terra portfolios was required to prevent further losses as UST had dropped to $0.08 .
The decision was controversial in the crypto community, as many suspected InsurAce was trying to reduce the amount of claims it would have to pay. Thomson said that out of those rejected, roughly 173 claims submitted have already been processed and that the protocol was ready to pay about $11 million to claimants.
The collapse of Terra and UST has lured the attention of regulators across the globe with the legendary South Korea financial crimes unit the Grim Reapers resurrected to discover if any crimes had been committed by Kwon or the Luna Foundation Guard (LFG) which managed Terra’s funds.
