SEC accuses Terraform Labs of diverting $166 million to legal team ahead of court decisions
Summary
Terraform Labs transferred $166 million to Dentons U.S. LLC, which the SEC views as an attempt to divert assets ahead of any court decision. The SEC alleges that $122 million was transferred within 90 days of the bankruptcy filing, deeming it suspicious. The SEC demands the reimbursement of the remaining $81 million and seeks the appointment of a fee examiner. Dentons also represents Do Kwon, Terraform's former CEO, who faces legal troubles and extradition to the US over allegations of misconduct related to the Terra/Luna collapse.
