A well-known law firm in Silicon Valley has been accused of being the "key player" in the FTX billion-dollar fraud case.

In the high-profile FTX fraud case, the focus of the victims' legal actions has shifted from the convicted founder SBF (Sam Bankman-Fried) to the legal advisory team behind him—the renowned Silicon Valley law firm Fenwick & West.

The victims submitted a lengthy 220-page amended complaint, accusing the law firm not merely of being a service provider, but of being the "key and essential" instigator in the multi-billion dollar fraud that led to the exchange's collapse.

The complaint specifically points out that the law firm agreed to create, manage, and represent a series of entities that clearly have conflicts of interest, such as Alameda Research, FTX, and North Dimension, which were intentionally designed to lack basic security measures, thereby opening the door for insiders to steal customer funds.

The plaintiff pointed out that according to the evidence disclosed during SBF's trial, FTX highly relied on Fenwick's legal support internally and utilized the law firm's industry reputation as a credibility endorsement to gain client trust and attract billions of dollars in venture capital.

In addition, Fenwick has also been accused of helping FTX meet the requirements of regulatory agencies, dressing its fraudulent activities in a veneer of legitimacy.

In response to these serious allegations, Fenwick & West is not responding for the first time. As early as September 2023, the law firm requested to dismiss all 8 claims on the grounds that the plaintiff "failed to present valid claims" and that the complaint had fundamental defects.

However, FTX's customers believe that with SBF's conviction and the disclosure of new evidence, Fenwick's previous defense is no longer tenable. They submitted a motion to amend, requesting the court to consider the new evidence and directly dismiss Fenwick's motion to dismiss, thereby allowing the case to proceed to substantive hearings to determine the law firm's true role.

In the end, the revised complaint presents a sharp characterization at its conclusion. It claims that Fenwick & West is either the negligent party responsible for serious work negligence, resulting in billions of dollars in losses, or a "key and critical" accomplice in this sensational cryptocurrency fraud case.

Currently, the local court will decide whether to approve this amended complaint. The outcome of this case will not only affect the scope of compensation for FTX victims but will also reshape the boundaries of responsibility for legal advisors in the technology and cryptocurrency industries.

#FTX # fraud allegations