Market News

Law and Fortitude: Fenwick's Defense Against FTX Collapse Allegations

Fenwick & West, a prominent law firm from Silicon Valley, has staunchly defended itself against allegations linked to the FTX collapse.

In a recent court filing, the firm labeled the accusations as "facile" and "flawed," responding to an amended class-action lawsuit from FTX customers.

This lawsuit claims that findings from FTX’s bankruptcy and Sam Bankman-Fried’s trial suggest Fenwick played a pivotal legal role in facilitating fraudulent actions.

Fenwick rebuffed these claims, asserting that it provided standard legal services and had no knowledge of any wrongdoing.

The firm underscored, “Fenwick is not liable for aiding and abetting a fraud it knew nothing about.”

Notably, the allegations against Fenwick mirror earlier accusations aimed at Sullivan & Cromwell, which were dismissed after a thorough investigation.

Key witnesses in Bankman-Fried’s trial, including internal lawyers, testified they were unaware of any fraudulent activities, lending credence to Fenwick's position.

Furthermore, Fenwick criticized the new allegations concerning its involvement with FTX’s exchange token, labeling them as "frivolous."

As the court reviews the amended complaint, FTX is gearing up to distribute funds to creditors, set to commence on September 30, 2025.

This scenario highlights the intricate relationship between legal advisory roles and corporate accountability within the evolving cryptocurrency sector.