FTX creditors have filed an updated class action lawsuit against Silicon Valley law firm Fenwick & West, alleging it served as a "key participant" in the $8 billion fraud that precipitated the crypto exchange's collapse. The complaint asserts Fenwick had actual knowledge of the fraud while providing substantial assistance, including creating corporate structures that enabled billions in customer fund misappropriation.
The filing cites testimony from former FTX executives Nishad Singh and Gary Wang, who stated Fenwick advised on hiding fund misuse. An independent examiner reviewed over 200,000 documents and found Fenwick maintained "exceptionally close relationships" with FTX leadership while facilitating conflicted transactions. The firm allegedly formed shell entities like North Dimension Inc. to conceal fund transfers, drafted backdated agreements to mislead regulators, and implemented auto-deleting Signal messages to obstruct investigations.
Notably, the amended lawsuit adds securities law claims in Florida and California, alleging Fenwick actively promoted unregistered securities through FTX Token (FTT) sales. Meanwhile, FTX continues creditor repayments, having distributed $6.2 billion across two rounds since February 2025. The exchange now disputes $800 million in claims from 49 restricted jurisdictions, with Chinese users representing 82% of disputed claims despite constituting only 5% of allowed claims.