BTC-Newswire

Terraform Labs Accuses SEC Of ‘Government Overreach’ In Legal Defense Dispute

Press Releases Crypto News Bitcoinist Terraform Labs Accuses SEC Of ‘Government Overreach’ In Legal Defense Dispute

In a recent court filing, bankrupt cryptocurrency firm Terraform Labs has strongly criticized the US Securities and Exchange Commission (SEC) for its objection to a $166 million retainer paid to law firm Dentons.

The firm argues that the SEC’s objection represents a troubling example of “government overreach” and aims to ” disadvantage ” and distract them just before the upcoming trial.

Terraform Labs Accuses SEC Of ‘Unprincipled Strategy’

In the filing, dated Monday, March 4, Terraform Labs contends that if it hadn’t filed for Chapter 11 bankruptcy protection, the SEC would have no authority or insight into the company’s defense strategy or its decision to allocate funds for legal representation.

However, the company claims that by taking advantage of the bankruptcy process, the SEC is allegedly using the situation to “sabotage” Terraform Labs’ defense in the SEC’s enforcement action.

The court filing by Terraform Labs further accuses the SEC of engaging in “damaging actions” and “questionable behavior” in similar enforcement actions, which are detailed in the firm’s reply to the SEC’s objection.

The company asserts that the SEC’s objection continues an “unprincipled strategy” to gain a litigation advantage in a non-bankruptcy proceeding. Terraform Labs urges the court to reject the SEC’s attempt to use the Chapter 11 process “for its own advantage” and to protect Terraform Labs’ right to defend itself in government litigation and investigations.

In addition, the company claims that the SEC’s objection raises concerns about the “lack of transparency” regarding the allocation of funds and argues that the proposed litigation expenses do not ben

Go to Source to See Full Article
Author: Ronaldo Marquez

Did you like this?
Tip BTC Newswire with Cryptocurrency