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SEC Extends Deadline for User Refunds Related to Terra Collapse

The U.S. Securities and Exchange Commission (SEC) has announced an extension of the deadline for a settlement plan concerning the Tai Mo Shan Limited case, which relates to cryptocurrency violations.

Initially set to conclude earlier, the new deadline for submitting a “Proposed Distribution Plan” is now August 20, 2026.

The SEC initiated cease-and-desist proceedings against Tai Mo Shan Limited in December 2024, citing violations of the Securities Act of 1933.

During the period from January 2021 to May 2022, the company engaged in the issuance and sale of securities without a valid registration statement.

Notably, the SEC found that Tai Mo Shan misled investors about TerraUSD (UST), an algorithmic stablecoin.

This action resulted in violations of several sections of the Securities Act, including Sections 5(a), 5(c), and 17(a)(3).

Due to these infractions, Tai Mo Shan Limited has been ordered to pay a total of $123,095,287 in penalties.

The total includes $73.45 million in disgorgement, $12.91 million in prejudgment interest, and $36.72 million in administrative fines.

The SEC's extension provides crucial time to finalize plans for compensating affected investors from the Terra collapse.

This move underscores the SEC's ongoing commitment to investor protection in the evolving cryptocurrency landscape.