Fenwick & West, the former legal adviser to FTX, is seeking to dismiss a lawsuit claiming it played a central role in the exchange’s multi-billion-dollar collapse. The firm has denied any involvement in FTX’s alleged fraudulent activities. In a recent court filing, Fenwick & West argued that after more than two years of litigation, there is still no evidence linking the firm to knowledge of wrongdoing.
Calling the allegations “facile and flawed,” the firm’s filing responds to an August 11 request by plaintiffs to update their lawsuit. The plaintiffs’ update cited evidence from Sam Bankman-Fried’s criminal trial and FTX’s bankruptcy proceedings, suggesting that Fenwick & West was deeply involved in the key actions that enabled the fraud.
The legal team contended that providing routine legal services to FTX does not make them responsible for the alleged fraud. Fenwick & West also disputed claims based on testimony from Sam Bankman-Fried’s criminal trial, labeling them as misleading or inaccurate, and emphasized that multiple witnesses confirmed the exchange’s executives orchestrated the scheme without the knowledge of external lawyers or advisers.
“Plaintiffs’ core theory is as facile as it is flawed. Fenwick is not liable for aiding and abetting a fraud it knew nothing about, based solely on allegations that Fenwick did what law firms do every day—provide routine and lawful legal services to their clients,”
Fenwick further said the plaintiffs’ attempt to amend the complaint appears aimed at delaying the case and adding claims that were previously dismissed against other defendants. It stressed that the customers used similar aggressive allegations against another law firm, Sullivan & Cronwell, and the case was eventually dismissed due to the lack of sufficient evidence.
Alleged Fenwick & West Ties to FTX Under Scrutiny
FTX customers first filed a lawsuit against Fenwick & West in 2023, claiming the law firm played a pivotal role in structuring the company in ways that allowed billions of dollars in customer funds to be diverted and mismanaged. The plaintiffs relied on evidence from Sam Bankman-Fried’s criminal trial and FTX’s bankruptcy proceedings, asserting that Fenwick was involved in key decisions that enabled the alleged fraud.
The most recent amendment to the lawsuit alleges that Fenwick provided “substantial assistance” to FTX by representing affiliated entities, including Alameda Research and its subsidiary North Dimension, despite the companies’ deliberate lack of safeguards to prevent misuse of assets.
Plaintiffs also cited testimony from former executives—including Nishad Singh, Gary Wang, and Caroline Ellison—who reportedly claimed that Fenwick was aware of improper loans, false statements, and the misuse of customer funds, and in some instances, advised on ways to conceal these actions.
The filing further accused Fenwick of helping design and facilitate the sale of unregistered securities, including FTX’s native token, FTT. It referenced findings from an independent FTX bankruptcy examiner, who reviewed over 200,000 documents and concluded that Fenwick had “exceptionally close relationships” with FTX leadership and was “deeply intertwined” in many aspects of the exchange’s alleged misconduct.
Despite these allegations, Fenwick & West maintains its denial, now asking the court to reject the request to amend the lawsuit and allow its motion to dismiss to proceed.
