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FTX investors sue Silicon Valley law firm, accusing it of assisting the SBF team in misappropriating client funds.
According to reports, FTX investors have filed lawsuits against the Silicon Valley law firm Fenwick & West in multiple regions, claiming that it was deeply involved in the collapse of FTX and assisted the SBF team in stealing billions of dollars in customer funds through the design of shell companies and structures. This law firm is the only one among 130 firms that collaborated with FTX to be accused of being aware of and substantially assisting in the implementation of fraud. The plaintiffs claim that Fenwick designed, approved, and implemented shell companies, including North Dimension, to conceal the flow of customer funds, evade regulation, and used its reputation to attract over $1.3 billion in financing for FTX. An independent reviewer’s report pointed out that the law firm was involved in nearly every aspect of the FTX group's misconduct and provided legal advice while being aware that customer funds were being misappropriated.