FTX’s former external legal team disputes involvement in fraud allegations

Source: Thomson ReutersThe plaintiffs contend that while Fenwick offered routine legal services within the bounds of the law, Sam Bankman-Fried allegedly misused the guidance to advance his deceitful activities.They further argued that Fenwick surpassed the norm in its service offerings to FTX.”Plaintiffs allege that Fenwick can however be held accountable due to the fact that Fenwick purportedly “provided services to the FTX Group entities that went well beyond those a law firm should and normally does offer,” the filing noted.Related: Cryptos Lehman moment: Investors buy $250M of FTX claims– ReportIt was further declared that employees of Fenwick chose to depart from the firm and join FTX voluntarily.Additionally, the filing reiterated that Fenwick assisted in developing corporations utilized by Bankman-Fried in his fraud, and advised FTX on regulative compliance in the progressing crypto landscape.However, Fenwick argued that it must not bear liability, as it was not the sole law company representing FTX.”This comes after the FTX debtors submitted a suit versus previous employees of the Hong Kong-incorporated company Salameda, which was formerly affiliated with the FTX group.FTX started legal action to recover $157.3 million, declaring that the funds were illegally withdrawn quickly prior to the exchanges bankruptcy filing.Magazine: Deposit risk: What do crypto exchanges really do with your cash?