Silicon Valley Legislation Agency Fenwick & West Recordsdata to Dismiss FTX Class Motion Lawsuit

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Fenwick & West, a famend Silicon Valley regulation agency, has denied allegations that it performed a task in facilitating a fraud allegedly dedicated by bankrupt crypto change FTX.

The regulation agency has filed a movement to dismiss the lawsuit, claiming that its providers supplied to FTX have been commonplace authorized providers and that it had no information of any fraudulent actions, Bloomberg first reported. 

The movement to dismiss, filed by Fenwick’s authorized crew at Gibson, Dunn & Crutcher, marks the agency’s first public protection in opposition to accusations associated to its involvement with FTX and its co-founder, Sam Bankman-Fried. 

FTX Clients Allege Fenwick Helped FTX Conceal Tens of millions in Stolen Funds

FTX prospects have alleged that Fenwick aided the cryptocurrency firm in concealing hundreds of thousands of {dollars} in funds that have been purportedly stolen from them.

In response to those allegations, Fenwick’s authorized crew, led by associate Kevin Rosen, argued that the agency’s providers for FTX could be distilled into three primary acts. 

These embody using attorneys who later joined FTX, forming companies utilized by Bankman-Fried for enterprise actions, and offering recommendation on regulatory compliance associated to cryptocurrency buying and selling.

The movement emphasised {that a} lawyer’s illustration of a consumer and familiarity with its workers doesn’t make them aware about the consumer’s inside operations. 

It refuted the plaintiffs’ declare that Fenwick ought to be held liable for offering “routine” and lawful authorized providers that allegedly contributed to fraudulent schemes, asserting that such a idea of legal responsibility contradicts the ideas of the authorized career.

Fenwick, acknowledged for its work with prestigious Silicon Valley giants like Apple, Oracle, and Fb, highlighted its status and integrity in its movement. 

The agency expressed its concern that plaintiffs have been making an attempt to carry it chargeable for damages stemming from the collapse of 1 consumer, FTX, with out legitimate authorized grounds.

Affected FTX Clients Search to Maintain Fenwick Accountable 

FTX prospects who have been affected by the November 2022 collapse have initiated a multidistrict litigation within the US District Court docket for the Southern District of Florida. 

On this authorized battle, they’re looking for to carry Fenwick accountable for its involvement with the cryptocurrency change. 

Fenwick had served as a number one company counsel for FTX, advising on transactions, tax issues, and litigation.

The lawsuit in opposition to Fenwick is only one of a number of third-party instances involving FTX prospects looking for compensation for his or her losses. 

These instances contain a variety of entities, from accounting companies to celeb endorsers.

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