Summary
Terraform Labs can retain its lawyers in bankruptcy proceedings, despite SEC challenge. Law firm agrees to return $48 million to Terraform. SEC alleges securities fraud by Terraform and former CEO Do Kwon. Trial set for later this month. Terraform filed for bankruptcy earlier this year.
Key Points
1. Terraform Labs can retain its lawyers in its bankruptcy proceedings, a judge ruled Tuesday.
2. The bankruptcy court found, thanks to two declarations in support of the company’s move, that the law firm “does not represent or hold any interest adverse to the debtor.”
3. Terraform filed to retain Dentons as its counsel in February.