FTX Victims Sue Law Firm Fenwick & West for $525 Million

According to Bloomberg Law, a group of victims who lost their life savings in the collapse of the FTX exchange filed a lawsuit on May 14 against Silicon Valley law firm Fenwick & West LLP, seeking $525 million in damages. The plaintiffs allege that the firm, having served as FTX’s primary outside legal counsel for years, knowingly assisted in establishing shell companies and implementing communications controls to conceal evidence—even while aware that FTX had breached its fiduciary duties and misappropriated billions of dollars in customer assets. FTX founder Sam Bankman-Fried was arrested following the exchange’s 2022 collapse and subsequently convicted on seven counts of fraud and money laundering, receiving a 25-year prison sentence.