SEC questions Terraform Labs' $166 million in 'questionable' payments to lawyers in court filing

The US Securities and Exchange Commission (SEC) has requested that the Delaware bankruptcy court reject Terraform Labs' request to retain Dentons US LLC as its special advisor, claiming that it has paid a "suspicious" amount to Dentons. In the filing, the SEC stated that Terraform Labs had transferred an astounding $166 million to Dentons' retained account, of which $122 million was transferred within 90 days prior to filing for bankruptcy. The SEC believes that this move appears to be aimed at removing assets that could be used to pay any judgments resulting from the agency's enforcement actions against the company. This $122 million has been transferred to the lawyer's "opaque bribery fund," which Terraform Labs can subsequently use as a "war fund" to continue its legal disputes with the SEC.