A group of customers of the once-prominent cryptocurrency exchange FTX has reportedly filed a lawsuit against the law firm Fenwick & West, insisting that it contributed to the alleged scam orchestrated by Sam Bankman-Fried (SBF) and the subsequent multi-billion losses it brought. 

The former leader of the exchange has pleaded not guilty to the fraud charges against him. He currently lives with his family, awaiting the trial at the beginning of October, which will determine whether he played a role in one of the biggest crashes in the history of crypto.

The Second Such Attack on Fenwick & West

According to a recent Reuters coverage, the complaint filed in the Northern District of California alleges the law company of bypassing regulatory rules and establishing entities that SBF and other former FTX executives employed to commit fraud.

Specifically, those organizations helped the crypto company to misappropriate users’ funds and use them on speculative investments or make political and charitable donations. 

The group of investors described Fenwick & West as the main outside law firm for FTX, maintaining that its attorneys had insight into the exchange’s “convoluted organizational structure, abject lack of internal controls, and dubious business practices.”

Subsequently, Fenwick & West supposedly enabled the marketplace to secure certain regulatory licenses in the USA without applying directly with watchdogs. 

One interesting fact is that Daniel Friedberg (the former leading lawyer of crypto exchange FTX) has previously worked at the sued law firm. Certain reports from the beginning of the year