Twenty FTX victims have filed a lawsuit against Silicon Valley law firm Fenwick & West LLP in the U.S. District Court for the District of Columbia, seeking $525 million in damages. The plaintiffs allege that between 2018 and 2022, the law firm assisted in designing FTX's corporate structure and shell companies, which allegedly helped conceal the misappropriation of customer funds and gave FTX a facade of compliance and legality.
The lawsuit also references testimony from former FTX engineering director Nishad Singh, who reportedly informed Fenwick attorneys about the misappropriation of customer funds. The case highlights ongoing legal challenges surrounding the collapse of FTX and the role of its advisors.
FTX Victims Sue Fenwick & West for $525 Million Over Alleged Misconduct
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