A group of 20 victims from five countries or jurisdictions has filed a $525 million lawsuit against Fenwick & West LLP, accusing the law firm of helping conceal the FTX fraud. The plaintiffs claim that Fenwick’s involvement gave the exchange a false air of legitimacy, leading to the loss of their life savings.
Twenty FTX victims are suing Fenwick & West, claiming the law firm didn’t just represent FTX, it helped build the infrastructure that kept the fraud running.
A group of 20 victims from five countries or jurisdictions has filed a $525 million lawsuit against Fenwick & West LLP, one of Silicon Valley’s top tech law firms, accusing it of helping conceal the FTX fraud. The plaintiffs say they lost their life savings when FTX collapsed, claiming that Fenwick’s involvement gave the exchange a false air of legitimacy that kept them from pulling their money out.
At the center of the case is testimony from Nishad Singh, FTX’s former Director of Engineering, who pleaded guilty to fraud charges and testified at Sam Bankman-Fried’s criminal trial. Singh said he personally told Fenwick attorneys that customer funds were being misused, and instead of walking away, the firm advised on how to hide it. The complaint goes further.
It says Fenwick attorneys set up North Dimension Inc., a Delaware shell company that posed as an electronics retailer but funneled over $3 billion in stolen customer funds. The firm also allegedly implemented FTX’s Signal auto-delete messaging policy, the same system federal prosecutors said helped the fraud go undetected by regulators and investigators.
A court-appointed bankruptcy examiner found that Fenwick created the corporate structures for both FTX and Alameda Research, formed shell entities to obscure money movements, and drafted backdated agreements to cover illicit transfers. The plaintiffs are bringing seven claims against Fenwick, including malpractice, fraud and gross negligence. They are seeking compensatory damages exceeding $525 million, return of all legal fees Fenwick earned from FTX and punitive damages against partners Tyler Newby and Daniel Friedberg for “deliberate and reckless individual professional conduct.
Fenwick & West LLP Silicon Valley Tech Law Firms FTX Fraud Customer Funds North Dimension Inc. Signal Auto-Delete Messaging Policy Bankruptcy Examiner Corporate Structures Shell Entities Backdated Agreements Malpractice Fraud Gross Negligence Punitive Damages Tyler Newby Daniel Friedberg Sam Bankman-Fried Ryan Salame Daniel Chapsky FTX Insolvency Testimony Under Pressure New Evidence Deliberate And Reckless Individual Professiona Bankruptcy Proceedings Court-Appointed Officer Documentary Evidence Silicon Valley Law Firms Tech Law Firms In Silicon Valley FTX Fraud Lawsuit Fenwick & West LLP In The News Silicon Valley Law Firm News Tech Law Firm News FTX Fraud News Law Firm News Law News Lawyer News Law Firm Scandal News Law Firm Fraud News Law Firm Lawsuit News Law Firm News Articles Law Firm News Headlines Law Firm News Stories Law Firm News Updates Law Firm News Articles Law Firm News Headlines Law Firm News Stories Law Firm News Updates
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