A new lawsuit accuses Silicon Valley law firm Fenwick & West of playing a central role in the collapse of cryptocurrency exchange FTX. The suit alleges the firm designed complex corporate structures to conceal misappropriation of customer funds, potentially aiding Sam Bankman-Fried’s alleged fraudulent scheme. This is particularly notable as it stands apart from other firms linked to FTX, all of which have been investigated for potential involvement. Nishad Singh, a former FTX engineering director who pleaded guilty and cooperated with prosecutors, testified that he informed Fenwick about the misuse of funds, improper loans, and false representations regarding the company’s operations. Caroline Ellison, ex-CEO of Alameda Research, also confirmed that customer funds were diverted to cover trading losses, adding weight to the allegations. The legal action, filed in court on August 12, 2025 by FTX investors, seeks to hold Fenwick accountable under the Racketeer Influenced and Corrupt Organizations Act (RICO), potentially marking a significant development for holding law firms responsible for fraudulent activities in the crypto space. This case has sparked debate about professional liability in the fast-growing world of digital finance. The outcome could set a precedent for holding professionals accountable for their actions in cryptocurrency, shaping legal practices for years to come.