Law Firm Behind FTX Legal Work Now Facing $525M Suit
A federal lawsuit seeks $525 million from Silicon Valley law firm Fenwick & West for its alleged central role in facilitating FTX's fraud. A bankruptcy examiner found the firm "deeply intertwined" in FTX's wrongdoing, creating shell companies like North Dimension to funnel over $3 billion, drafting backdated agreements, and implementing FTX's auto-delete messaging policy on Signal.
The suit, filed by 20 international victims, claims Fenwick's involvement lent FTX false legitimacy, preventing investors from withdrawing savings. It cites former FTX engineer Nishad Singh, who testified he directly told Fenwick attorneys about misuse of customer funds, after which the firm allegedly advised on concealment. The complaint includes claims of malpractice and fraud, targeting both the firm and two individual partners. This follows the recent rejection of Sam Bankman-Fried's bid for a new trial.
bitcoinist05/15 10:02
