The U.S. SEC has objected to Terraform’s $166 million retainer of Law Firm Dentons.
The SEC alleges that the money was “siphoned” off into an “opaque slush fund for its lawyers,” which could have gone to investors and creditors.
The U.S. Securities and Exchange Commission (SEC) has raised objections to a $166 million retainer payment to lawyers of Terraform, according to Reuters.
Additionally, the SEC has said that Terraform should not be allowed to hire law firm Dentons or pay litigation costs for employees, the report said.
The SEC has alleged that Terraform intended to avoid paying a future judgment in the SEC’s lawsuit, which is why it sent $166 million to Dentons.
Terraform Labs and its founder, Do Kwon, currently face a trial in the U.S. from the SEC regarding the collapse of TerraUSD. Terraform Labs filed a voluntary petition in Delaware for Chapter 11 bankruptcy in January 2024 after the failed stablecoin TerraUSD and the LUNA token collapsed in May 2022, destroying billions of dollars in investor wealth.
The money was “siphoned” off into an “opaque slush fund for its lawyers,” which could have gone to investors and creditors seeking to be repaid in Terraform’s bankruptcy, the SEC said, according to the report.
Terraform Labs or Dentons did not immediately respond to CoinDesk’s request for comment.
Read More: Do Kwon Tries to Delay SEC’s Terraform Trial so He Can Attend
6 Comments
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?
Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?
Your article helped me a lot, is there any more related content? Thanks!
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me? https://www.binance.info/ar-BH/register?ref=V2H9AFPY
Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.