Fenwick & West Sued for $525 Million Over Alleged Role in Building FTX Fraud Infrastructure

Twenty FTX victims have filed a lawsuit seeking $525 million from Fenwick & West, alleging the law firm operated as something far more integral to the exchange than external counsel. The plaintiffs claim Fenwick & West didn't simply provide legal advice to FTX — it actively helped construct the technological and structural infrastructure that allegedly enabled the fraud to persist.

The lawsuit marks a significant escalation in the legal aftermath of FTX's collapse. Plaintiffs argue the firm went beyond traditional legal representation and directly contributed to building systems they allege concealed financial misrepresentations and facilitated the misuse of customer funds. This framing positions the case as something beyond typical attorney liability — the firm is accused of participating in the alleged scheme rather than merely advising on it.

The $525 million damages claim signals the plaintiffs' intent to hold not just FTX's former executives accountable, but also the professional firms that structure complex operations. For Fenwick & West, the suit represents substantial reputational and financial exposure at a time when law firms serving cryptocurrency clients face heightened scrutiny over their degree of involvement in client operations. The outcome could influence how courts and regulators assess the boundaries of legal representation versus active facilitation in digital asset markets.