The U.S. Securities and Exchange Commission (SEC) has announced a significant update regarding the case involving Tai Mo Shan Limited and its connection to the collapse of Terra (LUNA). The SEC has decided to extend the deadline for the settlement plan associated with this case for a second time.
According to a press release from the SEC, the deadline for submitting a “Proposed Distribution Plan” in the ongoing administrative proceedings against Tai Mo Shan Limited has been pushed back to August 20, 2026. This extension provides the SEC with additional time to formulate a plan detailing how compensation will be allocated to investors affected by the collapse.
The SEC initially initiated cease-and-desist proceedings against Tai Mo Shan Limited on December 20, 2024, under Section 8A of the Securities Act of 1933. The commission”s findings revealed that the company had engaged in the issuance and sale of securities using interstate trading instruments without a valid registration statement during the period from January 2021 to May 2022.
In addition to these findings, the SEC concluded that Tai Mo Shan misled investors in May 2021 regarding TerraUSD (UST), which was characterized as an “algorithmic stablecoin” developed by Terraform Labs. This misleading behavior led the SEC to determine that the company violated Section 17(a)(3) of the Securities Act.
As a result of these violations, Tai Mo Shan Limited has been ordered to pay a total penalty of $123,095,287. This amount comprises $73.45 million in disgorgement, $12.91 million in prejudice interest, and $36.72 million in administrative fines.
With this extended deadline, stakeholders and affected investors are urged to stay informed about the forthcoming distribution plan and any related developments from the SEC regarding this high-profile case.
