FTX investors have filed a lawsuit against the Silicon Valley law firm Fenwick & West, claiming it was instrumental in the collapse of the crypto exchange. This lawsuit, part of a broader litigation involving over 130 firms that collaborated with FTX, is notable as Fenwick & West is the only firm directly accused of fraud. The investors allege that the law firm had actual knowledge of a fraudulent scheme orchestrated by FTX’s leadership and provided significant assistance in facilitating it. They claim that Fenwick designed corporate structures that enabled former CEO Sam Bankman-Fried to misappropriate hundreds of millions from customers through false loans and shell companies. Fenwick's involvement reportedly helped legitimize FTX, allowing it to secure over $1.3 billion in investments despite evident insolvency risks. Testimonies from former FTX insiders further implicate Fenwick, indicating that the firm was aware of misused customer funds, suggesting a deep entanglement in FTX's operations and a complicity in its fraudulent activities.

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