# SEC proposes a $123 million UST investor distribution plan

> 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.

- URL: https://riadefi.com/regulation/2026-08-20-sec-tai-mo-shan-ust-fair-fund-distribution/
- Posture: Proposal · not in effect
- Authorities: U.S. Securities and Exchange Commission
- Event date: 2026-08-20
- Version: 1, published 2026-08-26 (first published 2026-08-26)
- Advisor-relevant: no

This entry records a proposal. It does not change the law unless it is adopted.

## 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

## Sources

1. [Tai Mo Shan Limited — Notice of Proposed Plan of Distribution and Opportunity for Comment](https://www.sec.gov/files/litigation/admin/2026/34-106168.pdf) · U.S. Securities and Exchange Commission · 2026-08-20


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.