Fenwick denies allegations of involvement in FTX's $32 billion suspected scam
Fenwick & West, a prominent law firm, has denied any involvement in the fraudulent activities that led to the downfall of FTX, a leading cryptocurrency exchange that filed for bankruptcy in November 2022. FTX and its sister company Alameda Research found themselves in financial trouble, leading to the company's collapse.
Investigations and inquiries into the FTX affairs are being conducted by various authorities, including the US Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI), and the Department of Justice (DOJ). These investigations primarily focus on the actions of FTX and Alameda Research's leadership, particularly Sam Bankman-Fried.
There is a possibility that law firms that have worked with FTX or its subsidiaries may come under scrutiny, especially if there are potential violations of advisory duties or other legal requirements. However, there is currently no specific information indicating that Fenwick & West has been drawn into the suspicion of involvement in the alleged fraudulent activities of FTX. If such information were available, it would have been made public in the media or in official reports from the relevant authorities.
The law firm has stated that its role was limited to providing routine and lawful legal services to FTX. It has also asserted that Nishad Singh's testimony does not implicate the firm in concealing the 'misuse of customer funds' and sham loans.
In a separate development, the plaintiffs in the FTX customers' lawsuit have made new allegations against Fenwick, which they claim actively participated in client fraud rather than merely providing faulty legal guidance. However, the revised complaint against Fenwick has been considered untimely, relying on old information, and both misleading and futile.
The plaintiffs have also attempted to keep weak arguments alive by trying to paint lawyers as promoters, a claim that Fenwick asserts is unsubstantiated.
Meanwhile, other developments in the cryptocurrency world include Pantera Capital backing Solana with a $1.1 billion bet, eyes $750,000 Bitcoin. XRP and Dogecoin ETFs are set to launch this week, while Santander's Openbank has rolled out Bitcoin, Ether, and more for European users.
In other news, Nvidia's stock has crashed by 3% after China accused it of breaching anti-monopoly law. Monero's double-spending threat has grown after a block reorganization, and one user lost $1 million USDC to a MEV bot after a mistaken transaction.
Pi Network is also preparing for its final Testnet1 upgrade ahead of the mainnet transition. The UAE's M2 crypto exchange has dropped its business model, and a small group of YZY insiders have made significant profits as 51,000 traders combined to lose $75 million.
The investigations into FTX's affairs continue, with the focus on the actions of its leadership and any potential legal violations. Fenwick & West, for its part, maintains its innocence and continues to cooperate with the ongoing investigations.
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