SEC proposes a $123 million UST investor distribution plan

What changed

The SEC published a proposed plan for distributing the Tai Mo Shan Fair Fund, comprising approximately $123.1 million plus earnings less expenses, to compensate investors for calculated losses on TerraUSD acquired from May 23, 2021 through May 8, 2022. The notice opens a 30-day comment opportunity; the Commission has not yet approved the plan or established final distribution procedures.

Who it affects

• Investors who acquired UST during the proposed May 23, 2021 through May 8, 2022 eligibility period
• Advisers serving clients with potential UST-related recovery claims

What is still open

• Whether the Commission will approve or modify the proposed plan
• Final eligibility, loss-calculation, claims, and distribution procedures

What it means for an advisor

• Identify potentially affected client accounts without representing that a client is eligible for payment
• Preserve acquisition, disposition, wallet, exchange, and custody records that may be needed under a final plan
• Monitor the SEC proceeding for plan approval and final claim instructions