Why are FTX victims suing Fenwick & West?

A group of 20 FTX victims sued Fenwick & West for $525 million, alleging the law firm helped facilitate and conceal fraud at the collapsed crypto exchange. Plaintiffs claim the firm’s legal work gave FTX an appearance of legitimacy that encouraged customers to keep funds on the platform.

What role did Fenwick & West allegedly play in the FTX collapse?

The lawsuit claims Fenwick helped create corporate structures and systems that hid misuse of customer assets. Allegations include setting up shell companies, drafting backdated agreements and implementing encrypted auto-delete messaging systems.

What is North Dimension Inc. and why is it important in the lawsuit?

Plaintiffs allege North Dimension Inc. was a shell company used to move more than $3 billion in customer funds. The lawsuit claims Fenwick attorneys helped establish the entity, which allegedly disguised the movement of money tied to FTX operations.

What did former FTX executive Nishad Singh allegedly tell Fenwick lawyers?

According to the lawsuit, former FTX engineering director Nishad Singh told Fenwick attorneys that customer funds were being misused. Plaintiffs allege the firm failed to withdraw representation and instead advised on how to conceal the activity.

What did the bankruptcy examiner say about Fenwick & West?

The lawsuit cites findings from a court-appointed bankruptcy examiner who reportedly reviewed more than 200,000 documents linked to FTX. The examiner allegedly concluded that Fenwick was “deeply intertwined” in major aspects of FTX and Alameda Research operations.

What damages are the FTX victims seeking?

The plaintiffs are seeking more than $525 million in compensatory damages. They also want repayment of legal fees Fenwick earned from FTX and punitive damages against certain partners for alleged misconduct.

Has Fenwick & West been formally found guilty of wrongdoing?

No, the lawsuit contains allegations that still need to be tested in court. Fenwick & West has not been found liable, and the claims remain part of an ongoing legal process.

Why is this lawsuit significant for the crypto industry?

The case could increase legal scrutiny on professional service providers working with crypto firms, including lawyers, auditors and consultants. It raises broader questions about how much responsibility outside advisers carry when clients commit fraud.

Fenwick faces $525M FTX lawsuit

Written by Heidi Cuthbert Published May. 15 2026

A group of 20 FTX victims from five countries has filed a $525 million lawsuit against Fenwick & West, alleging the Silicon Valley firm helped facilitate and conceal fraud tied to the collapse of crypto exchange FTX.

The complaint, filed in the US District Court for the District of Columbia, claims Fenwick’s legal work gave FTX an appearance of legitimacy that prevented customers from withdrawing funds before the exchange failed in 2022.

Former FTX engineering director Nishad Singh allegedly testified that he informed Fenwick attorneys customer assets were being misused, but the firm instead advised on ways to conceal the activity.

The lawsuit further alleges Fenwick helped establish North Dimension Inc., described as a shell company used to move more than $3 billion in customer funds, while also implementing an auto-delete messaging system on Signal that prosecutors said hindered regulatory oversight.

Plaintiffs cited findings from a court-appointed bankruptcy examiner who reportedly concluded Fenwick was “deeply intertwined in nearly every aspect of FTX Group's wrongdoing” after reviewing more than 200,000 documents connected to the bankruptcy proceedings.

The victims are pursuing claims including fraud, malpractice and gross negligence while seeking more than $525 million in damages, repayment of legal fees earned from FTX and punitive damages against individual firm partners.

Separately, a federal judge recently rejected former FTX chief executive Sam Bankman-Fried’s request for a new trial, with Judge Lewis Kaplan dismissing arguments surrounding witness testimony and FTX’s insolvency as unsupported by the record.