Fenwick & West LLPformer law firm of FTX, faced class action lawsuit They claim to have assisted in the alleged multi-billion dollar fraud of crypto exchanges.
On August 7, a group of FTX clients filed a motion in California District Court alleging that the law firm had created multiple “Shadow Society” That allowed FTX co-founder Sam Bankman-Fried and other executives to “take over”creative but illegal strategies” To perpetuate the fraud.
The lawsuit alleges that Fenwick & West provided services to FTX. “They went far beyond what a law firm should do and usually provide”such as structuring the acquisition by FTX US to avoid regulatory scrutiny and providing staff to execute the law firm’s proposed strategies.
“Shadow Society” These were referred to as North Dimension and North Wireless Dimension, as claimed in the lawsuit Funds were embezzled from FTX customers.
Plaintiffs Allege Fenwick & West Selectively Aided in FTX’s Alleged Fraud Do not interfere in the event of a series of misrepresentations allegedly made by FTX to its clients.
According to class action, There was an implied agreement between FTX US, other FTX affiliates and Fenwick & West to defraud customers – which was coveted by the law firm because “Had the ability to earn financially” from the alleged misconduct of FTX.
Bankman-FriedCarolyn Ellison, former CEO of Alameda Research, Gary WangFormer co-founder of FTX, E Nishad SinghThe four alleged FTX insiders named by the plaintiffs are the former chief technical officers of FTX.
Fenwick & West was sued in a similar class action in February, alleging that it assisted Bankman-Fried and FTX in setting up their businesses.
The February lawsuit — which also targeted FTX investor and venture capital firm Sequoia Capital — alleged that services provided by Fenwick & West were central to the Bankman-Fried fraud.
According to a Reuters report on June 21, the law firm recently signed a contract with the firm Gibson Dunn has been asked to assist with legal matters related to his alleged role in FTX.
FTX collapsed and filed for bankruptcy in November 2022, unable to process large amounts of customer withdrawals.
Bankman Fried has been placed under house arrest 12 Respond To The Allegations, including wire fraud, conspiracy and money laundering. He will face two criminal trials in October and March, respectively.
On 8 August, prosecutors said they intended to re-attach the charge. Illegal financing of election campaignsThe first was abandoned due to possible violations of treaty obligations with the Bahamas.
Cointelegraph reached out to Fenwick and West for comment, but did not immediately receive a response.
Translation by Matteo Caron
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