{"id":583556,"date":"2023-08-08T04:19:59","date_gmt":"2023-08-08T03:19:59","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=583556"},"modified":"2023-08-08T04:20:10","modified_gmt":"2023-08-08T03:20:10","slug":"ftx-law-firm-class-action-aiding-fraud","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/ftx-law-firm-class-action-aiding-fraud\/","title":{"rendered":"FTX\u2019s Law Firm Faces Class Action Lawsuit For Allegedly Aiding Fraud"},"content":{"rendered":"\n<ul><li>A group of FTX customers has brought a class action suit against the exchange\u2019s law firm.&nbsp;<\/li><li>Fenwick &amp; West LLP is being sued for allegedly aiding fraud through its legal advice to the crypto exchange.&nbsp;<\/li><li>The law firm has been accused of setting up entities used to perpetrate fraud and structuring transactions to avoid scrutiny.&nbsp;<\/li><li>Sam Bankman-Fried previously cited legal advice from Fenwick &amp; West to bolster his defense.&nbsp;<\/li><\/ul>\n\n\n\n<p>Fenwick &amp; West LLP, the California-based law firm that served as the primary outside counsel for FTX, is being sued by the bankrupt crypto exchange\u2019s customers. The customers have brought a class action lawsuit against the law firm for its alleged role in aiding fraud through the legal advice it provided to the crypto exchange before its collapse last year.&nbsp;<\/p>\n\n\n\n<h2><strong>Fenwick Was Aware Of FTX\u2019s Shady Business Practices?<\/strong><\/h2>\n\n\n\n<p><strong>\u00a0<\/strong>A group of FTX customers filed a class action lawsuit against the exchange in the U.S. District Court for the Northern District of California, though the plaintiffs plan to transfer it to the Southern District of Florida, <a href=\"https:\/\/www.reuters.com\/legal\/legalindustry\/ftx-law-firm-fenwick-faces-second-lawsuit-by-crypto-customers-2023-08-07\/\" rel=\"nofollow noopener\">Reuters<\/a> reported earlier today. Earlier this year, a judicial panel <a href=\"https:\/\/en.ethereumworldnews.com\/judicial-panel-consolidates-ftx-lawsuits\/\">ordered<\/a> the consolidation of multiple lawsuits related to the bankrupt exchange in Miami where they would be heard by Federal Judge Michael Moore.\u00a0<\/p>\n\n\n\n<p>The latest complaint alleged that the services extended to FTX by Fenwick &amp; West went beyond what a law firm usually provides to its clients. The crypto exchange\u2019s customers accused the law firm of setting up \u201cshadowy entities\u201d that were used by founder Sam Bankman-Fried and his inner circle to commit fraud and structure the exchange\u2019s transactions in ways that allowed them to circumvent regulatory scrutiny.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>\u201cWhen asked by FTX Group executives for counsel, Fenwick lawyers were eager to craft not only creative, but illegal strategies.\u201d <\/p><cite>Complaint against Fenwick &amp; West LLP<\/cite><\/blockquote>\n\n\n\n<p>The customers further alleged that through its unique position and proximity to FTX\u2019s operations, Fenwick &amp; West was aware of the exchange\u2019s complicated organizational structure, lack of internal controls, and dubious business practices. The class action lawsuit is the second FTX-related legal matter to hit the law firm. Earlier this year, Sam Bankman-Fried attempted to subpoena Fenwick to prove that he was acting on legal advice provided by the law firm during his stint as the exchange\u2019s Chief Executive.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A group of FTX customers have sued the crypto exchange&#8217;s primary outside counsel for aiding fraud through its legal advice. <\/p>\n","protected":false},"author":62,"featured_media":583558,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17,22,2,26],"tags":[7704,564,108361],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583556"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=583556"}],"version-history":[{"count":2,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583556\/revisions"}],"predecessor-version":[{"id":583559,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583556\/revisions\/583559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/583558"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=583556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=583556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=583556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}