Terraform Labs can retain its lawyers in its bankruptcy proceedings, a judge ruled Tuesday.

The ruling comes after the Securities and Exchange Commission challenged the bankrupt company’s retainer of $166 million for the lawyers. 

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.”

Additionally, the law firm agreed to return $48 million — of the amount pre-paid for the firm’s work on the case — to Terraform. 

Read more: Terraform faces ‘significant liability’ after SEC trial

The agency previously argued that “the timing and enormous amount of…

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