The SEC faces an August 20 deadline to submit a plan for distributing $123.1 million paid by Jump Crypto subsidiary Tai Mo Shan to investors harmed by Terra’s 2022 collapse. The proposal must define investor eligibility, loss calculations, claim requirements and payment procedures. Meeting the deadline does not trigger immediate payouts, as distributions depend on regulatory approval of the framework and subsequent steps. Tai Mo Shan has already paid the full amount, comprising $73.45 million in disgorgement, $12.92 million in prejudgment interest and $36.73 million in civil penalty. Coordination with Terraform Labs’ separate bankruptcy recovery remains unresolved, as claims in those proceedings do not automatically establish eligibility for the SEC fund.
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