Fenwick & West Sued Over Alleged Role in FTX Collapse

A new lawsuit has been filed against Fenwick & West LLP, a Silicon Valley law firm accused of playing a role in the collapse of cryptocurrency exchange FTX. The firm was FTX's primary outside counsel for several years until its bankruptcy in 2022.

According to the lawsuit, Fenwick had knowledge of FTX's breach of fiduciary duties and created shell companies to hide evidence of misappropriated customer assets. This alleged negligence is said to have contributed to the collapse of the exchange, resulting in significant financial losses for investors.