The law firm Fenwick & West is facing a lawsuit alleging its significant role in the collapse of the cryptocurrency exchange FTX. The lawsuit, filed on August 11, 2025, claims that the firm not only provided poor legal advice but also actively assisted in the fraudulent activities orchestrated by former FTX CEO Sam Bankman-Fried.
Allegations Against Fenwick & West
Fenwick & West is being accused of fraud in a case that is part of a larger legal matter involving over 130 law firms. However, Fenwick & West is the only firm facing fraud charges in a special 'Law Firm Track.'
Evidence and Testimonies
Investors claim that Fenwick was aware of the fraud and provided significant assistance by setting up shell companies, such as North Dimension, a subsidiary of Alameda Research. These companies concealed the misappropriation of customer funds by FTX, evading government oversight. Former FTX executive Nishad Singh testified that he informed Fenwick of customer fund misuse, and the firm advised on concealing this.
Financial Implications for Investors
The lawsuit alleges that Fenwick & West's respected reputation helped FTX gain trust and raise $1.3 billion. It also claims that the firm was aware of FTX's impending financial collapse, leading to significant losses for investors amounting to billions of dollars.
The ongoing litigation highlights the complex relationships between law firms and the cryptocurrency sector. The evidence and testimonies gathered against Fenwick & West could significantly impact future legal proceedings in this area.
