FTX users bolster lawsuit claiming law firm was ‘key’ to FTX fraud

FTX customers say their class complaint against Fenwick & West needs updating with new details from Sam Bankman-Fried’s trial and FTX’s bankruptcy case.

Customers of the bankrupt crypto exchange FTX are looking to update their lawsuit against Fenwick & West, one of the law firms once contracted by the company, claiming new information shows it was central to FTX’s collapse.

The criminal trial of former FTX CEO Sam Bankman-Fried and investigations in the exchange’s bankruptcy proceedings “produced specific evidence supporting that Fenwick played a key and crucial role in the most important aspects of why and how the FTX fraud was accomplished,” FTX customers wrote in a court filing to amend their suit on Monday.

“Simply put, the FTX Fraud was only possible because Fenwick provided ‘substantial assistance’ by creating and approving the structures that allowed numerous frauds,” the group said.

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