The U.S. Securities and Exchange Commission has given itself another year to decide whether to approve or reject a proposed plan for distributing money collected from Tai Mo Shan Limited. The October 15 order moves the decision deadline to October 19, 2027.

The order is procedural, not a new enforcement charge. It affects the timetable for resolving the distribution plan tied to Tai Mo Shan’s December 2024 settlement over TerraUSD and LUNA. The action also follows other recent SEC guidance affecting investors.

What the SEC changed

The SEC published its proposed distribution plan on August 20, 2026 and accepted comments through September 19. Under the agency’s Fair Fund and disgorgement rules, an approval or rejection order ordinarily should follow within 30 days after the comment period unless the SEC finds good cause for more time.

The Division of Enforcement said it needs additional time to present a recommendation on the comments and the proposed plan. The Commission therefore extended the deadline by one year. The order does not say when investors could receive money or identify a final payment formula. The review arrives as payment networks and issuers expand stablecoin-linked bank payouts.

What the settlement covers

In December 2024, the SEC found that Tai Mo Shan negligently misled investors about the mechanism supporting TerraUSD’s $1 peg and acted as a statutory underwriter for certain LUNA sales. Tai Mo Shan agreed, without admitting or denying the findings, to pay $73.45 million in disgorgement, $12.92 million in prejudgment interest and a $36.73 million civil penalty.

The SEC said Tai Mo Shan bought more than $20 million of TerraUSD after the token depegged in May 2021. According to the agency, those purchases helped move the token toward $1 while the market had been told that an algorithmic mechanism supported the peg.

What investors should watch

The next decisive document will be an SEC order approving or rejecting the distribution plan. Until that arrives, the October 2027 date is a review deadline, not a promised payout date. Crypto investors can also monitor upcoming corporate disclosures such as the Coinbase Q3 earnings schedule.

Potential claimants should rely on SEC notices and any appointed fund administrator for eligibility and filing instructions. The current order contains no application portal, payment schedule or guaranteed recovery amount.

Primary sources: SEC order extending the distribution-plan review, October 15, 2026; SEC settlement announcement, December 20, 2024.

Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.