FTX Customers Claim Law Firm Fenwick & West Was ‘Key’ to Fraud in Updated Lawsuit

Key Points

1. FTX creditors allege Fenwick & West was a 'key' participant in the $8 billion fraud, creating shell entities and backdated agreements to mislead regulators.

2. The law firm allegedly drafted intercompany loan agreements and advised FTX on avoiding regulatory scrutiny, while also promoting the exchange's capital investments.

3. Fenwick & West's encrypted communications policy allowed Signal's disappearing messages, which prosecutors claim facilitated the fraud.

4. FTX has distributed $6.2 billion to creditors but disputes $800 million in claims from 49 restricted jurisdictions, with only 5% of allowed claims processed.

5. Sam Bankman-Fried remains imprisoned until 2044, while accomplices Caroline Ellison and Ryan Salame face legal consequences.