New Filing Claims Fenwick & West Deeply Tied to FTX Fraud

Customers claimed that the scheme couldn’t happen without Fenwick’s help. According to a submission of applications from August 11a law firm designed and approved companies structures that have enabled taking money without protective measures.

They said that Fenwick agreed to work with related companies such as Alamed Research and North Dimension, which did not have control to stop billions in customers funds, which were later admitted to being stolen.

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Much of theirs The new report is based on the testimony of the criminal trial Sam Bankman-Fied. He was found guilty of seven charges, including fraud and money laundering, after witnessing three former executive executives, Zixiao Gary Wang, Caroline Ellison and Nishad Singh.

Prosecutors too Cited findings from an independent examiner in the bankruptcy process. The examiner reviewed more than 200,000 internal records, many have been tied to Fenwick. Concluded the law firm Had very close relationships with FTX leaders were involved in internal contracts that abused the funds for customers.

The examiner also said that Fenwick created Shell Company to hide the movement of the property and set up encrypted signal chats between the executives who automatically deleted messages.

In addition, the updated application has added new requests under the Laws of Securities of the State of Florida and California. Customers said Fenwick was included in the creation, promotion and help of sale of FTX token (FTT), offensive accounts and other products Controlled by exchange. They claimed that these were unregistered securities.

Recently, Changpeng Zhao asked the US bankruptcy court to reject a $ 1.8 billion lawsuit launched by FTX. What did he say? Read the whole story.