Arkham

Read

Crypto clients filed a new lawsuit against a legal company, Fenwick &amp; West LLP, a former consultant of the <a href="https://crypto.news/ftx-files-for-chapter-11-bankruptcy-taking-down-about-130-companies-with-it/" rel="noopener noreferrer nofollow">now-defunct</a> FTX exchange. 
The California-based law firm, which had served as FTX’s principal external counsel, faces a <a href="https://fingfx.thomsonreuters.com/gfx/legaldocs/gdvzwqjmopw/FenwickMDL.pdf" data-type="URL" data-id="https://fingfx.thomsonreuters.com/gfx/legaldocs/gdvzwqjmopw/FenwickMDL.pdf" target="_blank" rel="noopener noreferrer nofollow">class action complaint</a>. 
The clients allege that Fenwick &amp; West’s legal advice facilitated fraudulent activities leading up to the collapse of the crypto platform last year. 
The lawsuit alleges that Fenwick &amp; West transcended its role as legal advisors. They purportedly played an active role in constructing transactions for FTX that veered away from regulatory scrutiny. 
Additionally, the complaint suggests that the firm assisted in forming clandestine entities. Those were allegedly exploited by FTX’s founder Sam Bankman-Fried and other high-ranking officials to perpetrate fraudulent activities. 
 You might also like: <a href="https://crypto.news/arkham-intelligence-offers-bounty-for-identifying-ftx-hacker/" rel="noopener noreferrer nofollow"> Arkham Intelligence offers bounty for identifying FTX hacker </a> 
<h2 class="wp-block-heading" id="fenwick-west-s-legal-issues">Fenwick &amp; West’s legal issues</h2> 
This isn’t the first time Fenwick &amp; West has faced legal backlash for its association with FTX. 
Another <a href="https://fingfx.thomsonreuters.com/gfx/legaldocs/byvrlgdnxve/Alameda%20vs.%20Friedberg.pdf" target="_blank" rel="noopener noreferrer nofollow">lawsuit</a> insists that the legal company created two shadow companies. They allegedly facilitated the misappropriation of client funds. The paper alleges that FTX executives used those for speculative investments and political and charitable contributions.&nbsp; 
Additionally, the lawsuit suggests that Fenwick’s advisory role helped FTX secure regulatory licenses through indirect transactions, potentially skirting closer scrutiny from U.S. authorities. 
It is worth noting that in 2020, Daniel Friedberg, previously associated with Fenwick &amp; West, transitioned to FTX as its chief regulatory counsel.&nbsp; 
FTX founder Sam Bankman-Fried faces multiple accusations of misusing funds from FTX customers, although he <a href="https://crypto.news/disgraced-ftx-founder-sbf-pleads-not-guilty/" rel="noopener noreferrer nofollow">maintains</a> his innocence. His attempt to subpoena Fenwick &amp; West for evidence during the ongoing criminal proceedings was <a href="https://www.reuters.com/legal/bankman-fried-loses-bid-documents-former-ftx-law-firm-2023-06-23/" target="_blank" rel="noopener noreferrer nofollow">refused</a> earlier this year. 
 Read more: <a href="https://crypto.news/ftxs-former-ceo-sbf-allegedly-leaked-ex-lovers-diary/" rel="noopener noreferrer nofollow"> FTX’s former CEO SBF allegedly leaked ex-lover’s diary </a>

Former FTX legal consultants face another lawsuit

Table of Contents

crypto.news

Other articles published on Aug 9, 2023

SHIB, DOGE, BTC, XRP Now Receive Major Adoption Boost in USA: Details

Litecoin Price Prediction: Is LTC Forming a Bearish View?

Brazil Launches Drex: New Central Bank Digital Currency Brand

EMURGO Africa Invests USD 250K in Changeblock, a Pioneering Carbon Market Technology Startup

What Are Elliptic Curves And What Is Their Use In Crypto?

FTX’s former law firm hit with lawsuit alleging it set up ‘shadowy entities’

Join our free newsletter for daily crypto updates!