The U.S. Securities and Exchange Commission has objected to Terraform Labs hiring Dentons as special counsel in its Chapter 11 proceedings, calling the $166 million retainer with the firm an attempt to avoid paying a judgment in an enforcement action.
Terraform filed an application to retain Dentons as special counsel on Feb. 13, asking the court to approve the firm’s involvement in resolving litigation. Currently, that includes an SEC action against Terraform and co-founder Kwon Do Hyeong in the Southern District of New York, another case against the company in a Singaporean court, and various other ongoing matters involving Terraform and its employees. That application says Dentons’ position as a global law firm and its history working with Terraform justifies the retainer.
