Law Firm Fenwick & West Hires Legal Team Amid Scrutiny Over FTX Advice
Law firm Fenwick & West is facing scrutiny over its role in advising the now-bankrupt cryptocurrency exchange FTX, including from the company’s indicted founder Sam Bankman-Fried. The Silicon Valley-founded firm has hired an outside legal team from Gibson, Dunn & Crutcher as its advice becomes a focus of Bankman-Fried’s criminal defense.
Gibson Dunn’s Involvement
Nancy Hart and Kevin Rosen, leaders in Gibson Dunn’s prominent law firm defense practice, are representing Fenwick on issues related to FTX, including in the Bankman-Fried criminal case and a federal class action lawsuit.
Fenwick & West’s Relationship with FTX
Fenwick, known for representing startups and technology clients, was a primary outside law firm advising FTX as it grew into one of the world’s largest cryptocurrency exchanges before collapsing last November. The firm also counseled Bankman-Fried’s hedge fund Alameda Research, which is at the center of the criminal case against him.
Impact on Bankman-Fried’s Defense
Documents from Fenwick could potentially bolster Bankman-Fried’s defense by showing that he followed guidance from lawyers on certain issues and did not intend to break the law. However, prosecutors have opposed this effort, arguing that the proposed subpoena does not identify specific evidence that could be used in court.
Subpoenas Received by Fenwick
Fenwick has also received subpoenas from federal law enforcement, according to a filing by FTX lawyers in its bankruptcy case. The contents of the government subpoenas are not public, but prosecutors have said in court filings that the documents Fenwick turned over do not relate to issues Bankman-Fried has raised in the criminal case.
Class Action Lawsuit Involving Fenwick
Additionally, Fenwick is named in a proposed class action lawsuit brought by an FTX customer, alleging that the firm helped set up entities Bankman-Fried used to commit fraud and advised on transactions that allowed FTX to skirt regulatory scrutiny.