SEC Extends Deadline for TerraUSD Fund Distribution Plan to 2027

The Securities and Exchange Commission has until Oct. 19, 2027, to decide whether to approve a proposed distribution plan for a $123.1 million TerraUSD (UST) fund, leaving potential investor payments unresolved. The Fair Fund stems from a separate proceeding against Tai Mo Shan Limited, a wholly owned subsidiary of Jump Crypto Holdings LLC. Tai Mo Shan paid $123,095,287 in disgorgement, prejudgment interest and civil penalties. The fund holds that payment plus accrued interest; taxes, fees and expenses would be deducted from the amount available for distribution. In a 2024 proceeding, the SEC found Tai Mo Shan negligently misled the public about UST’s peg during a May 2021 depeg. The SEC also found that the company acted as a statutory underwriter in certain LUNA sales.

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