Fenwick & West is a law firm in California that is facing accusations regarding its role in the assistance of Sam Bankman-Fried’s fraudulent practices. The FTX customers have been a victim of faulty practices. However, the law firm is only defending its actions through a court filing.
The firm is arguing that it merely provided routine legal services. This fraudulent crypto exchange platform’s misconduct was unknown to the members of the firm. They have insisted that their role was strictly legal.
Victims, the FTX customers, had filed a lawsuit that brought about accusations against Fenwick of its fraudulent transactions. Fenwick had apparently been devising illegal strategies to help the FTX insiders misappropriate customer funds.
However, Fenwick has protested these claims. It stated that their work was neither illegal nor fraudulent in any way. Their only job was to involve companies, set up acquisitions, and deal with regulatory compliance. All of these are simply legal services.
The customers’ complaints against Fenwick specifically mention an email from the former FTX chief compliance officer, Dan Friedberg. This email mentions that FTX funds existed for the sole purpose of the benefit of customers.
The customers claimed this email was proof of Fenwick having complete knowledge of FTX’s improper dealings.