This month, Fenwick submitted a response to a federal court in Florida, dismissing the latest allegations against the firm related to the collapse of FTX.
Claims and Counterarguments
The dispute dates back to a class action lawsuit filed after FTX imploded in late 2022. Earlier this month, plaintiffs requested permission to amend their complaint, arguing that information revealed through bankruptcy proceedings and the trial of Sam Bankman-Fried showed Fenwick was more deeply involved in the exchange's fraudulent practices than previously believed. Their legal team described Fenwick as 'central' to the scheme's execution. In response, Fenwick maintained that advising a client on corporate matters does not equate to enabling fraud.
Testimony Allegations
One striking allegation involves testimony from Nishad Singh, FTX's former engineering chief. Plaintiffs suggested that Singh told jurors Fenwick helped disguise improper loans and misuse of customer assets. Fenwick insists that this interpretation is misleading, stating that Singh merely confirmed the firm provided legal advice on structuring founder loans, a routine practice in closely held companies.
Securities Law Claims
The plaintiffs also introduced new claims under securities law, alleging that Fenwick assisted in promoting the FTX Token (FTT) in violation of state laws. Fenwick countered that these accusations were 'frivolous' and should have been raised years earlier if they had any merit.
This clash underscores FTX victims' efforts to widen the pool of defendants and attempt to recover losses from one of the most high-profile collapses in crypto history. Fenwick maintains it is being unfairly portrayed as a promoter and facilitator when, in its view, it merely performed standard legal work.
