A law firm that previously provided services to the now-defunct cryptocurrency exchange FTX has responded to a class action lawsuit that accused it of aiding and abetting the exchange’s alleged fraud.
According to the court on September 21st filingUS law firm Fenwick & West denies all accusations of wrongdoing in connection with the provision of legal services during its FTX operations.
“It is a black law that lawyers are not held responsible for colluding with, aiding and abetting their clients’ misconduct.” [his] That action falls within the scope of client representation. ”
The plaintiffs allege that while Fenwick was providing routine legal services within the bounds of the law, Sam Bankman Freed misused that advice to promote fraudulent activities.
They further alleged that Fenwick exceeded standards in the services it provided to FTX.
“The plaintiffs allege that Fenwick may still be liable because it is alleged that Fenwick “provided services to FTX Group companies far beyond those normally provided by a law firm.” claims to be sexual.
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Additionally, it is alleged that Fenwick employees voluntarily chose to leave the company and join FTX.
Additionally, the filing reiterated that Fenwick helped establish the companies used in the Bankman Freed fraud and advised FTX on regulatory compliance in the evolving cryptocurrency industry.
But Fenwick argued that because it was not the only law firm representing FTX, it should not be held liable. The company claims it played a relatively small role in providing various legal advice to the bankrupt exchange.
“If the plaintiffs’ allegations are sufficient to hold Fenwick liable for conspiracy and aiding and abetting, any lawyer could be taken to court and forced to answer for his client’s misconduct. .That is not the law.”
This comes after the FTX debtor filed a lawsuit against a former employee of Salamida, a Hong Kong company formerly part of the FTX Group.
FTX has filed a lawsuit to recover $157.3 million, alleging that funds were illegally withdrawn shortly before the exchange filed for bankruptcy.
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