FTX victims sue Fenwick & West over alleged role in the exchange's collapse

Legal fallout from FTX's collapse is widening. Bloomberg reported that on May 14 (local time), a new lawsuit was filed in U.S. federal court accusing Silicon Valley law firm Fenwick & West of playing a "key assisting role" in the implosion. The complaint alleges the firm helped conceal the misuse of customer funds, misleading investors and delaying withdrawals. Filed by multiple FTX victims, the suit seeks about $525 million in damages. Plaintiffs say Fenwick went beyond routine legal work, alleging it helped set up shell entities, designed fund-transfer structures, and assisted with information and communications management systems used to obscure misappropriation. The lawsuit also cites findings from a bankruptcy investigation report, which said Fenwick lawyers were "deeply embedded" in FTX and related-party structures, including work tied to the complex financial arrangements between FTX and Alameda Research. Fenwick has faced earlier claims tied to FTX. In August 2023, a group of customers sued the firm for allegedly aiding FTX's fraud. In 2025, FTX investors again named Fenwick as a core defendant as the litigation broadened into a larger class action. In February 2026, Fenwick reached a preliminary settlement framework with FTX victims, pending court approval.