Overview

• The SEC objects to Terraform Labs' $166 million retainer payment to Dentons, claiming it was used to create an opaque slush fund.
• Terraform Labs is accused of transferring $122 million to Dentons within 90 days before filing for Chapter 11 bankruptcy.
• The SEC argues that the funds could have been used to repay investors and creditors in Terraform's bankruptcy case.
• Terraform Labs and its founder, Do Kwon, face a trial in the U.S. regarding the collapse of TerraUSD.
• The SEC has requested the court to deny Terraform Labs' retention of Dentons and to appoint a fee examiner on the retainer payment.