FTX Victims Sue Fenwick & West for $525M Over Alleged Role in Fraud

On Wednesday, 20 FTX victims from five countries filed a $525 million lawsuit against law firm Fenwick & West LLP in US District Court, accusing the firm of helping conceal the fraud that led to the exchange’s collapse. The plaintiffs allege they lost their life savings and that Fenwick provided legal structures enabling customer fund misuse while limiting outside scrutiny.

According to the complaint, Nishad Singh, FTX’s former engineering director who pleaded guilty to fraud charges, testified that he told Fenwick attorneys customer funds were being misused. Singh also stated the firm created North Dimension Inc., a Delaware shell company that allegedly routed over $3 billion in stolen customer funds. A 2024 court-appointed bankruptcy examiner’s report cited in the lawsuit found Fenwick was “deeply intertwined in nearly every aspect of FTX Group’s wrongdoing,” having formed shell entities, drafted backdated agreements, and implemented an auto-delete messaging policy to obscure fraud.