The legal battle surrounding the infamous FTX scandal has taken a sharp turn. Instead of focusing solely on convicted founder Sam Bankman-Fried (SBF), victims are now targeting his former legal counsel — the high-profile Silicon Valley firm, Fenwick & West.
In a newly filed 220-page amended complaint, plaintiffs allege that Fenwick wasn’t just providing routine legal services. They claim the firm played a “central and indispensable” role in enabling the massive fraud that brought down the crypto exchange.
According to the filing, Fenwick allegedly helped set up and oversee multiple interconnected entities — including Alameda Research, FTX, and North Dimension — despite glaring conflicts of interest. These companies were reportedly structured without essential safeguards, creating an environment where insiders could misappropriate customer assets with ease.
The lawsuit further asserts that evidence from SBF’s criminal trial shows how FTX leaned heavily on Fenwick’s legal expertise. The firm’s respected reputation in the tech industry allegedly acted as a trust signal, helping FTX attract billions from both customers and venture capital investors.
Plaintiffs also accuse Fenwick of aiding FTX in navigating regulatory requirements, which they say gave the fraudulent operation an undeserved air of legitimacy.
Fenwick & West, however, has long denied wrongdoing. In September 2023, the firm moved to dismiss all eight claims against it, arguing that the complaint lacked legal merit and contained fundamental flaws.
But with SBF’s conviction and new evidence coming to light, victims insist that Fenwick’s defense no longer stands. They have asked the court to accept their amended complaint and reject the firm’s dismissal request, pushing the case toward full hearings that could reveal the depth of Fenwick’s involvement.
The plaintiffs end their filing with a pointed statement — either Fenwick was grossly negligent, enabling billions in losses, or it was a willing “key participant” in one of the largest crypto frauds in history.
The court’s decision on whether to accept the amended complaint could prove pivotal. Beyond potential restitution for FTX’s victims, the ruling may redefine how far legal advisors’ accountability extends in high-stakes tech and cryptocurrency cases.
