The U.S. Securities and Exchange Commission (SEC) has objected to Terraform Labs' payment of a $166 million retainer to law firm Dentons, accusing the company of transferring funds to avoid paying a judgment. Terraform Labs allegedly used part of the money to cover legal expenses for co-founder Do Kwon, who faces criminal charges. The SEC claims that the retainer payment created an 'opaque slush fund' for lawyers, to the detriment of investors and creditors during the company's bankruptcy proceedings.