A U.S.-based law firm that previously offered its services to the now-defunct cryptocurrency exchange, FTX, has contested allegations of aiding Sam Bankman-Fried in purportedly illicit activities in a recent court filing.
In a court document dated September 21, Fenwick & West, the U.S. law firm, firmly refutes all claims of misconduct related to the legal services provided during FTX's operations:
The plaintiffs assert that Fenwick provided standard legal services within the boundaries of the law, while Sam Bankman-Fried allegedly misused the counsel to further his fraudulent schemes.
Furthermore, the plaintiffs argue that Fenwick went above and beyond in its service offerings to FTX.
The plaintiffs contend that Fenwick can be held responsible because it supposedly "offered services to the FTX Group entities that exceeded the scope typically provided by a law firm," according to the filing.
The document also suggests that Fenwick's employees voluntarily chose to leave the firm and join FTX.
Moreover, the filing reiterates that Fenwick aided in the establishment of corporations utilized by Bankman-Fried in his fraudulent activities and provided FTX with guidance on regulatory compliance within the evolving cryptocurrency landscape.
Nevertheless, Fenwick argues that it should not bear full liability, as it was not the sole legal representation for FTX. The firm maintains that it played a relatively minor role in providing various aspects of legal counsel to the bankrupt exchange.
This development comes in the wake of a lawsuit filed by FTX debtors against former employees of the Hong Kong-incorporated company Salameda, previously associated with the FTX group. FTX initiated legal action to recover $157.3 million, alleging that the funds were unlawfully withdrawn shortly before the exchange's declaration of bankruptcy.
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