A law firm that once served the now-defunct cryptocurrency platform FTX has rejected a class-action lawsuit accusing it of aiding the exchange in its alleged fraudulent actions. In a court filing dated September 21, the United States-based law firm Fenwick & West vehemently denies all allegations of misconduct in connection with the legal services it provided during FTX’s operations.
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The plaintiffs assert that while Fenwick offered standard legal services within lawful limits, Sam Bankman-Fried purportedly exploited the counsel for his fraudulent endeavors.
Furthermore, they argue that Fenwick went beyond the typical scope of its service provision to FTX.
The plaintiffs contend that Fenwick could be held accountable because it allegedly “rendered services to the FTX Group entities that extended significantly beyond the customary role of a law firm,” as outlined in the filing.
The lawsuit additionally asserts that Fenwick’s employees made independent decisions to leave the firm and join FTX voluntarily.
Furthermore, the document reiterates that Fenwick aided in the establishment of corporations utilized by Bankman-Fried in his fraudulent activities and provided guidance to FTX regarding regulatory compliance in the ever-changing cryptocurrency industry.
Nonetheless, Fenwick contends that it should not be held responsible, as it was not the exclusive legal counsel for FTX. It maintains that its role in furnishing diverse legal advice to the now-bankrupt exchange was relatively minor.
This development follows a lawsuit by FTX debtors against former Salameda employees, who were once associated with the Hong Kong-incorporated company affiliated with the FTX group.
FTX has launched legal proceedings to recover $157.3 million, claiming that these funds were wrongfully withdrawn just before the exchange filed for bankruptcy.