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FTX Victims Sue Law Firm Fenwick & West for $525M Over Alleged Fraud Assistance on May 14

GateNews

Enforcement Actions

2026-05-16 01:39:55

According to Bloomberg Law, FTX victims filed a lawsuit against law firm Fenwick & West LLP on May 14, seeking $525 million in damages. The plaintiffs allege that the Silicon Valley firm, which served as FTX’s primary external legal counsel for years, knowingly assisted the exchange in setting up shell companies and implementing communications controls to conceal evidence of fraudulent activities and misappropriation of billions in customer assets. FTX founder Sam Bankman-Fried was arrested following the exchange’s 2022 collapse and convicted on seven counts of fraud and money laundering, receiving a 25-year prison sentence.

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