Woofun AI reports that the SEC faces an August 20 deadline to establish a distribution framework for a $123.1 million fund recovered from Tai Mo Shan, intended to compensate eligible Terra investors. This regulatory milestone requires defining qualification criteria, loss calculation methods, claim submission protocols, and payment mechanisms for the recovered assets.

The fund's composition reflects a structured financial breakdown ordered by the regulator. Tai Mo Shan has remitted the full $123.1 million, comprising $73.45 million in disgorgement, $12.92 million in prejudgment interest, and a $36.73 million civil penalty.

Woofun AI data shows these amounts, plus accrued interest, are currently held in a Fair Fund pending final allocation to verified claimants.

Structurally, the distribution process is complicated by overlapping recovery efforts involving Terraform Labs. Eligibility for the Tai Mo Shan fund is not automatically established by claims filed in the separate Terraform Labs process. The SEC must therefore delineate how these two recovery tracks interact and determine the precise methodology for calculating eligible losses across both channels.

The distribution plan expected Thursday will provide the initial detailed framework for resolving these jurisdictional and procedural questions. While this does not guarantee immediate payouts, it marks a critical step toward moving the $123.1 million fund closer to investors. This development underscores the regulator's ongoing effort to navigate complex multi-entity recovery scenarios.