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FTX Customers Allege Fenwick & West Enabled Exchange’s Fraud in Amended MDL Suit

Filed Aug. 11, the suit introduces racketeering-style counts alongside Florida and California securities charges against Fenwick based on an independent examiner’s report plus insider trial testimony.

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Overview

  • FTX customers filed an amended multidistrict litigation complaint on Aug. 11 accusing Fenwick & West of materially facilitating the diversion of customer funds.
  • The updated filing adds federal RICO-style allegations and state securities claims in Florida and California over Fenwick’s role in structuring and promoting unregistered token sales.
  • Plaintiffs cite an independent examiner’s review of over 200,000 documents and testimony from former FTX insiders to allege Fenwick designed shell entities and auto-deleting chat policies to conceal asset transfers.
  • Among more than 130 law firms named in the MDL, Fenwick is the sole defendant accused of actual knowledge and substantial assistance in FTX’s collapse.
  • Fenwick & West denies wrongdoing, maintains its work was within legal representation bounds, and has pending motions to dismiss the amended complaint.