FTX investors have filed a lawsuit against Fenwick & West, a Silicon Valley law firm, alleging that the firm aided in misappropriation of customer funds. The lawsuit draws on evidence from the recent trial of Sam Bankman-Fried and the FTX bankruptcy proceedings. It alleges Fenwick played a role in establishing entities like Alameda Research and North Dimension for allegedly improper purposes. Fenwick denies these claims, previously dismissing a related case in 2023. This case highlights potential legal liabilities for law firms handling cryptocurrency clients and raises concerns about transparency within the sector. While the immediate impact on the broader market remains unclear, it could lead to stricter oversight of legal counsel roles in the future.