FTX Creditors Escalate Legal Battle Against Fenwick & West Over $8B Fraud Allegations

FTX creditors have ramped up their legal efforts against Silicon Valley law firm Fenwick & West, filing an amended class action lawsuit that accuses the firm of actively facilitating the exchange's collapse. The updated complaint alleges that Fenwick & West engineered fraudulent corporate structures and backdated documents while being fully aware of the misappropriation of customer funds. This development mirrors earlier legal actions taken against other entities involved in the FTX debacle, underscoring the growing scrutiny over the roles played by professional service providers in the cryptocurrency exchange's downfall. The lawsuit seeks to hold Fenwick & West accountable for its alleged role in the $8 billion fraud, marking a significant escalation in the ongoing legal fallout from FTX's collapse.

FTX Creditors Accuse Fenwick & West of Facilitating $8B Fraud in Updated Lawsuit

FTX creditors have intensified legal pressure on Silicon Valley law firm Fenwick & West, filing an amended class action that positions the firm as an active participant in the exchange's collapse. The complaint alleges Fenwick engineered fraudulent corporate structures and backdated documents while having actual knowledge of customer fund misappropriation.

The lawsuit mirrors earlier action against Sullivan & Cromwell, which faced similar allegations of enabling Sam Bankman-Fried's scheme to commingle FTX and Alameda Research assets. Both cases highlight growing scrutiny of professional service firms' roles in crypto failures.

FTX's estate continues clawback efforts, having distributed $6.2 billion to creditors since February 2025. The exchange now challenges $800 million in claims from restricted jurisdictions, with Chinese users representing 82% of disputed amounts despite constituting just 5% of allowed claims.

Alameda Research Unlocks $35M in Solana After 4 Years – Market Watchers Speculate on Distribution

Solana is back in the headlines as blockchain data reveals Alameda Research has unstaked $35 million worth of SOL, originally locked in late 2020. The funds, now significantly appreciated from their initial $350,000 value, were held by the defunct trading firm tied to convicted fraudster Sam Bankman-Fried.

The MOVE has sparked trader speculation about potential market impacts, though no immediate sale is confirmed. Alameda's connection to FTX's 2022 collapse—marked by billions in misused customer funds—adds scrutiny to the transaction. Market participants are weighing whether this signals renewed activity in Solana's liquidity pools.