Major Law Firm Fenwick & West Denies Helping FTX in its Bad Actions
US law firm Fenwick & West faces claims for helping crypto exchange FTX's wrong actions, but they strongly deny any involvement in wrong doings. The story unfolds.
A big US law firm named Fenwick & West, which once worked for the crypto exchange FTX, has claimed that they didn't do anything wrong. People have accused the firm of helping FTX in its wrong ways.
Based on a Sept. 21 document, Fenwick & West denies any wrong behavior when it was helping FTX:
“Lawyers shouldn’t be blamed for wrongs their clients do if they are doing their regular job,” the firm said.
The people suing say that while Fenwick did its normal job, Sam Bankman-Fried, a person related to FTX, used their advice in the wrong way. They also said Fenwick did even more than what law firms usually do for FTX.
The suing group believes some Fenwick workers left their firm to join FTX. They also say Fenwick helped set up companies for Bankman-Fried and gave FTX advice on crypto rules.
But Fenwick says it wasn't the only law firm helping FTX and only had a small part in advising the exchange. They say, “If lawyers can be blamed for their clients' wrongs, then every lawyer will be scared. This isn’t right.”
This all happened after FTX debtors accused workers of a company called Salameda, which was linked to FTX.
FTX also took legal steps to get back $157.3 million, saying this money was taken wrongly before the exchange went bankrupt.
