The U.S. Securities and Exchange Commission (SEC) revealed suspicious movements of Terraform Labs’ funds.

According to Reuters, the SEC discovered a payment of $166 million to the company’s lawyers from Terraform Labs. The exact date of the regulator’s statement is unknown.

The commission found that 90 days before the bankruptcy, the Dentons firm received $122 million from Terraform Labs. Later, the law firm received another $44 million from the company. The agency believes the funds could have been transferred to a so-called “opaque fund” with the expectation of using them to finance a legal battle with the SEC.

Representatives of the Commission note that more than half of the amount has already been spent to cover the costs. Dentons U.S. account LLC remains $81 million but the company cannot represent the defendant’s interests until it returns the funds previously spent, SEC says.

As a result, the regulator demanded that the Delaware bankruptcy court refuse to allow the defendant to involve the Dentons firm in the process. SEC officials allege that the firm was previously involved in siphoning off funds from the company that could have been used to pay for enforcement decisions.

The company used some money to pay consulting bills for former Terraform Labs founder Do Kwon. Reportedly, for the extradition case of an entrepreneur. Do Kwon is currently in custody in Montenegro, where he was arrested for using a fake passport. He could be extradited to the United States to stand trial on charges of organizing large-scale fraud.