In a recent court filing, a United States law firm that had previously offered services to FTX challenged allegations of assisting Sam Bankman-Fried in his alleged unlawful activities.
A law firm that previously provided services to the now-defunct cryptocurrency exchange FTX has refuted a class-action lawsuit brought against it, claiming that it assisted in the exchange’s alleged fraudulent activities.
According to a Sept. 21 court filing, United States-based law firm Fenwick & West denies all accusations of misconduct related to the provision of legal services during FTX operations:
Filing in the U.S. District Court for the Southern District of Florida. Source: Thomson Reuters
They further argued that Fenwick exceeded the norm in its service offerings to FTX.
The plaintiffs allege that Fenwick can be held liable because it purportedly “provided services to the FTX Group entities that went well beyond those a law firm should and usually does provide,” the filing states.
It further claims that employees of Fenwick chose to depart from the firm and join FTX voluntarily.
Additionally, the filing reiterated that Fenwick assisted in establishing corporations used by Bankman-Fried in his fraud and advised FTX on regulatory compliance in the evolving crypto landscape.
However, Fenwick argued it should not bear liability as it was not the sole law firm representing FTX. It asserts that it played a relatively minor role in providing various aspects of legal advice to the bankrupt exchange.
This comes after FTX debtors filed a lawsuit against former employees of the Hong Kong-incorporated company Salameda, which was previously affiliated with the FTX group.
FTX initiated legal action to reclaim $157.3 million, alleging that the funds were illicitly withdrawn shortly before the exchange’s bankruptcy filing.