Fenwick & West, a law firm once engaged by FTX, has moved to dismiss an updated class-action complaint that seeks to tie it to the crypto exchange’s multibillion-dollar fraud and collapse.
In a Monday filing, the firm denied the claims, calling the theory as facile as flawed. However, the firm maintained that it only provided routine and lawful legal services and had no knowledge of the fraud.
Allegations Against Fenwick Called Untimely & Recycled
The case is part of a wider set of lawsuits filed after FTX’s downfall in late 2022, which also named celebrities and professional advisers. Plaintiffs previously leveled nearly identical claims against Sullivan & Cromwell before abandoning them when a report found no evidence that the firm knew of fraud.
Your completely free resource hub designed to boost your knowledge of cryptocurrencies
Fenwick argued the same logic applies here, saying the new claims are based on “stale information” that plaintiffs have had for years, and amount to a delay tactic. “They offer no credible reason why the same allegations should survive against Fenwick,” the firm said.
Nishad’s Testimony Against FTX
Plaintiffs pointed to testimony from Nishad Singh, FTX’s former engineering chief, suggesting Fenwick was aware of improper loans and customer fund misuse.
Fenwick countered that Singh’s testimony was mischaracterized, noting he only described legal advice on structuring founder loans common in closely held companies and nothing about hiding fraud.
The firm emphasized that dozens of witnesses during Bankman-Fried’s trial confirmed the scheme was concealed from in-house counsel, auditors, employees, and other outside advisers. “Fenwick is no different,” it wrote.
Securities Claims Rejected as “Frivolous”
The amended complaint also alleges Fenwick helped launch and promote the FTX Token (FTT) in violation of state securities laws in Florida and California. Fenwick dismissed this as “far-fetched,” untimely, and a strategic effort to keep the case alive after most claims against celebrity promoters were dismissed.
