Fenwick Denies Role in FTX Fraud Allegations as Plaintiffs Seek Case Expansion

Highlights:

• Fenwick denies a role in FTX, as it argues the lawsuit relies on flawed claims and stale information from past cases.
• Plaintiffs cite Nishad Singh’s testimony, but Fenwick says it only gave routine legal advice on common founder loans.
• The court has not ruled on the expanded complaint, while FTX bankruptcy plans include creditor payouts in September 2025.
  

Fenwick & West told a Florida federal court that it should reject new allegations connecting the firm to the collapse of cryptocurrency exchange FTX. The law firm argued that it only provided routine legal services and had no role in misconduct. Plaintiffs want to expand their class-action case, first filed in 2023, by including claims tied to bankruptcy proceedings and the criminal trial of Sam Bankman-Fried.

🚨 JUST IN: Fenwick & West denies being key to the multibillion-dollar FTX fraud. The law firm asks a judge to dismiss the proposed lawsuit. #FTX #Crypto

— CryptoAlert (@SatoshiWatch) August 28, 2025

Fenwick stated in its filing that the court should deny the request because the accusations are flawed and speculative. The firm said the plaintiffs rely on assumptions that mischaracterize standard legal work. According to Fenwick, the complaint attempts to hold the firm responsible for actions it did not know about or authorize.

The law firm also said the new complaint was untimely and based on information available years earlier. It described the claims as “stale” and “misleading.” Fenwick compared the accusations to those previously made against Sullivan & Cromwell, another law firm once named in the case. Those allegations were eventually dismissed after an examiner concluded Sullivan did not know about FTX’s fraud. Fenwick argued that the same reasoning should apply to its defense.

Fenwick Denies Role in FTX Fraud Allegations

The revised complaint was based on a testified statement of a former FTX head engineer, Nishad Singh. They claimed that his words implied that Fenwick was aware of improper lending and misappropriation of customer money. Nevertheless, Fenwick disagreed and claimed that Singh was referring to legal advice regarding founder loans. The firm stated that such a loan is common with privately owned firms and does not mean that they are committing fraud.

Fenwick added that Singh never testified that it helped conceal any wrongdoing. Instead, the testimony described ordinary legal structuring. The law firm stressed that Singh’s remarks do not provide proof of misconduct. It also highlighted that dozens of witnesses during Bankman-Fried’s trial confirmed they had no knowledge of the fraud. These witnesses included internal lawyers, employees, accountants, executives, and other outside counsel. Fenwick said it was no different from them.

FTX class action targets Fenwick & West.

Law firm fires back: claims are late, flawed, frivolous.
– Routine legal work ≠ fraud
– Denies promoting $FTT
– Says plaintiffs recycling old theories

More: https://t.co/on7jssz2Du pic.twitter.com/y3D8UpS6Hq

— Fomos News (@fomos_news) August 28, 2025

The plaintiffs also introduced new claims under Florida and California securities laws. They argued that Fenwick assisted in promoting FTT, the exchange’s native token. Fenwick called the allegations frivolous, untimely, and irrelevant. The firm accused the plaintiffs of adding the claims in an attempt to prolong the lawsuit after other allegations failed.

Wider Legal Fight Over FTX Collapse

The case against Fenwick forms part of a larger effort by FTX customers to hold firms and individuals accountable for the exchange’s downfall. Plaintiffs have also filed claims against celebrities and other companies. Several of those actions have been dismissed because of insufficient evidence.

Fenwick emphasized that the current allegations closely resemble the ones withdrawn against Sullivan & Cromwell. It argued that the plaintiffs cannot show a valid reason why nearly identical claims should move forward against Fenwick. The court has not yet ruled on whether the expanded complaint will proceed.

Meanwhile, FTX continues its bankruptcy proceedings. The exchange plans to distribute the next round of creditor payments on September 30, 2025. Eligible payments will be processed through distribution partners, including Kraken, BitGo, and Payoneer. At the same time, a group of Chinese creditors has opposed FTX’s plan to restrict payouts in 49 jurisdictions. They argued the proposal is unfair and lacks legal support.