Terraform Labs counters SEC’s ‘slush fund’ claims, alleges government overreach
Quick Take The SEC last week objected to Terraform Labs’ $166 million payment to retain Dentons as its special counsel. Terraform Labs called the SEC’s legal objections a “troubling example of government overreach.”
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 ongoing investigation from the Department of Justice. The objections made by the SEC are without merit and should be overruled, Terraform Labs said.
“That the SEC, the very party pursuing the Debtor in the SEC Enforcement Action, filed such a vehement objection to the Debtor’s spending its own funds to ensure an adequate defense in the SEC Enforcement Action is a troubling example of government overreach,” Terraform Labs said in the filing. The company claimed that the SEC’s true motives are to distract its focus before the upcoming March 25 trial.
The company also argued that the SEC’s accusations regarding the retention of Dentons include incorrect legal interpretations and false claims.
Terraform Labs filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Jan. 21, with estimated assets and liabilities between $100 million and $500 million, according to its filing at the time. It said in January that the bankruptcy protection would allow the company to pursue an appeal against the SEC.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Skipped Bitcoin Cash? Qubetics ($TICS) Could Be Your Redemption Ticket – Top Cryptos for Significant Returns
The crypto market has been on fire lately. With the spotlight shifting to new and innovative blockchain projects, everyone’s eyes are on which cryptos will make waves this year.Bitcoin Cash: A Missed Opportunity for Significant ReturnsQubetics: Revolutionizing Digital Finance with Real-World Asset TokenizationConclusion: Time to Act on Qubetics
BTC Short Position by ETH Whale Nears $332M
A crypto whale boosts their BTC short position to $332M, facing losses and potential short squeeze risk.Whale Boosts BTC Short Position Amid Market VolatilityRisk of Liquidation LoomsStrategic Buy Orders Placed

Pakistan Launches Crypto Council Led by Finance Minister
Pakistan forms Crypto Council to boost blockchain and crypto adoption, chaired by Finance Minister Muhammad Aurangzeb.Pakistan Takes a Bold Step Toward Crypto AdoptionFinance Minister to Lead the InitiativeFocus on Innovation and Financial Inclusion

Trump Crypto Project WLFI Buys AVAX, MNT for $4M
Trump-linked crypto project WLFI buys $4M worth of AVAX and MNT, total investment hits $340M with $115M in unrealized losses.WLFI Adds AVAX and MNT to Crypto Portfolio$340M Invested Across 11 TokensHeavy Losses Despite Market Activity

Trending news
MoreCrypto prices
More








