Published on March 05, 2024 03:28 GMT+00:00edited on March 05, 2024 03:31 GMT+00:00

Terraform Labs has challenged the U.S. Securities and Exchange Commission’s objection to the company’s retention payment of Dentons U.S. LLC as special counsel in its Chapter 11 bankruptcy case, in a filing submitted to a Delaware court on Monday.

Last week, the SEC requested the court to deny Terraform Labs’ retention of Dentons’ as its counsel, taking issue with the company’s $166 million payment to lawyers. SEC claimed that a part of this “suspicious” amount was transferred to “an opaque slush fund,” and that the transfer was made deliberately to avoid paying possible judgment from its enforcement action.

In Monday’s filing, Terraform Labs again requested authority to pay legal expenses, which it said is imperative in defending against the SEC’s litigation and complying with the …