Fenwick & West Under Fire: Law Firm Accused of Facilitating FTX Fraud in Collapse Scandal

Silicon Valley law firm Fenwick & West faces serious allegations of aiding fraud in the dramatic collapse of cryptocurrency exchange FTX. A recently filed lawsuit claims the firm played a central role in nearly every aspect of the exchange's downfall, allegedly providing substantial assistance to Sam Bankman-Fried's multi-billion dollar scheme. Notably, Fenwick & West is the only law firm among 130 facing federal racketeering charges under a special "Law Firm Track" designation. The allegations suggest deep involvement in FTX's operations prior to its catastrophic failure, marking a significant development in the ongoing fallout from one of crypto's most spectacular collapses. As of August 2025, this case represents a crucial test of legal accountability in the cryptocurrency sector, with potential implications for how law firms engage with crypto clients moving forward.

Law Firm Fenwick & West Faces Fraud Allegations in FTX Collapse

Silicon Valley law firm Fenwick & West has been sued for allegedly facilitating fraud in the FTX collapse. The lawsuit claims the firm was "deeply intertwined" in nearly every aspect of the exchange's downfall, providing substantial assistance to Sam Bankman-Fried's alleged multi-billion dollar scheme.

Fenwick & West stands alone among 130 law firms in facing federal racketeering charges under the dedicated "Law Firm Track" of the FTX multidistrict litigation. Plaintiffs allege the firm designed corporate structures enabling FTX insiders to siphon customer funds through sham loans.

The case follows similar action against Sullivan & Cromwell, FTX's bankruptcy counsel, which faced scrutiny over $8.5 million in fees. Legal experts note proving law firm culpability requires evidence beyond routine client engagement.

FTX Customers Sue Fenwick & West Over Alleged Role in Exchange Collapse

FTX investors have escalated legal action against Silicon Valley law firm Fenwick & West, accusing it of facilitating the exchange's fraudulent operations. An amended lawsuit filed in Florida's Southern District Court alleges the firm designed legal structures enabling customer fund misappropriation.

The filing contends Fenwick & West provided "substantial assistance" despite having "actual knowledge" of FTX's fraud. Evidence from Sam Bankman-Fried's criminal trial reportedly shows the firm's crucial role in creating the operational framework for the alleged $8 billion fraud.

Plaintiffs claim the law firm managed legally conflicted entities without safeguards, directly contributing to one of crypto's most spectacular collapses. The case underscores growing scrutiny of professional enablers in digital asset controversies.