U.S. SEC accuses Terraform Labs of paying "staggering" $166 million advance to Dentons law firm

According to the US Securities and Exchange Commission (SEC), Terraform Labs' payment of up to $166 million to law firm Dentons was strongly criticized. The SEC claimed that Terraform Labs transferred the money to an "opaque bribery fund" for its lawyers and that the bankrupt cryptocurrency company should not be allowed to hire the law firm or pay legal fees for employees during bankruptcy. Terraform Labs is the developer of LUNA and TerraUSD (UST) cryptocurrencies and has voluntarily filed for Chapter 11 bankruptcy protection in Delaware. In its filing with the state bankruptcy court on January 21, the company listed assets and liabilities of $100 million to $500 million, as well as 100 to 199 creditors. Terraform Labs' bankruptcy filing aims to allow the company to continue executing its business plan in the legal proceedings of the securities fraud case brought by the SEC.