FTX users have intensified their lawsuit against the law firm implicated in the crypto exchange’s collapse, asserting that the firm played a crucial role in facilitating the fraud. This development highlights the growing accountability expected in the crypto industry.
The US Securities and Exchange Commission (SEC) has criticized the “staggering” $166 million retainer fee requested by Latham & Watkins, the law firm representing Terraform Labs and its founder Do Kwon in the agency’s enforcement action against the firm. The SEC argued that the retainer is “excessive and unreasonable” given the alleged fraud involved and the precedent it could set for future cases. The SEC also expressed concern that the fee could “unfairly deplete” the assets available to compensate investors harmed by Terraform’s alleged misconduct.