FTX Victims Sue Fenwick & West for $525M Over Alleged Role in Fraud
The post FTX Victims Sue Fenwick & West for $525M Over Alleged Role in Fraud appeared on BitcoinEthereumNews.com. James Ding May 14, 2026 11:34 Twenty FTX victims are suing law firm Fenwick & West for $525M, alleging its role in concealing fraud through shell companies and legal structures. Twenty victims of the FTX collapse have filed a $525 million lawsuit against the prominent Silicon Valley law firm Fenwick & West, alleging it played a critical role in concealing the crypto exchange’s massive fraud. The complaint, filed in the U.S. District Court for the District of Columbia, accuses Fenwick of helping structure shell entities, obscure fund movements, and provide legal guidance that enabled FTX’s misuse of customer assets. The plaintiffs argue that Fenwick’s involvement gave FTX a veneer of legitimacy, preventing investors from recognizing the warning signs before the exchange’s implosion in November 2022. They also highlight the firm’s alleged creation of North D