Fenwick & West Sued Over Alleged Role in FTX Crypto Collapse

Fenwick & West LLP was sued Wednesday over its alleged role in the collapse of the FTX cryptocurrency exchange.

The Silicon Valley law firm was FTX’s primary outside counsel for years until the cryptocurrency exchange collapsed in 2022. FTX founder Samuel Bankman-Fried was convicted on seven fraud- and money laundering-related counts and sentenced to 25 years in prison.

Fenwick had knowledge of FTX’s breach of its fiduciary duties by misappropriating billions of dollars in customer assets, and created shell companies and communications controls to hide the evidence, a group of people who claim they lost their life savings after FTX’s ...