FTX’s former law firm hit with lawsuit alleging it set up shadowy entities

FTXs former primary counsel Fenwick & & West LLP has been hit with a class-action match declaring it assisted the crypto exchanges supposed multi-billion dollar fraud.An Aug. 7 filing by a group of FTX customers in a California District Court alleged the law company set up numerous “shadowy entities” enabling FTX co-founder Sam Bankman-Fried and other executives to adopt “illegal but creative techniques” to perpetuate fraud.The fit declares Fenwick & & West offered services to FTX that “went well beyond those a law company need to and usually does supply,” such as structuring acquisitions by FTX United States in ways that circumvented regulative analysis and supplying personnel to perform techniques the law company proposed.The “shadowy entities” were named as North Dimension and North Wireless Dimension, which the suit declared siphoned misused FTX customer funds.Highlighted excerpt from the class complaint versus Fenwick & & West. Source: CourtListenerThe complainants stated Fenwick & & West assisted and abetted FTXs alleged fraud by selecting not to intervene in a series of misstatements supposedly made by FTX to its customers.There was an implied agreement between FTX United States, other FTX affiliates and Fenwick & & West to deceive consumers, the class match said– something that appealed to the law company because it “stood to gain economically” from FTXs supposed misbehavior, it added.Bankman-Fried, previous Alameda Research CEO Caroline Ellison, former FTX co-founder Gary Wang and former FTX engineering lead Nishad Singh were the 4 so-called FTX experts listed by the complainants. Cointelegraph called Fenwick & & West for remark however did not right away get a response.Magazine: Deposit danger: What do crypto exchanges really do with your cash?

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