FTX Customers Want to Expand Lawsuit, Alleging Law Firm Enabled Fraud

FTX customers asked a federal judge in Miami for permission to file an amended class-action complaint against Fenwick & West on August 11, 2025. The plaintiffs say new evidence from Sam Bankman-Fried's criminal trial and the bankruptcy case shows the law firm played a central role in enabling the fraud.

The filing in the Southern District of Florida adds details and new state securities claims against Fenwick & West based on materials that surfaced during Bankman-Fried's trial and the FTX bankruptcy proceedings.

The trial record and bankruptcy examiner materials provide specific support that Fenwick “provided substantial assistance” by helping design structures that allowed misuse of customer assets, according to the filing. Plaintiffs want to add those facts to their complaint and expand liability theories under Florida and California securities statutes.

Fenwick attorneys advised across corporate, tax, regulatory and transactional matters for FTX entities from 2017 through the exchange's collapse. The proposed amended complaint says they reviewed the terms of service and helped structure affiliated entities such as North Dimension. Plaintiffs argue these arrangements lacked safeguards and made it easier to transfer customer funds.

The motion cites testimony from former FTX insiders at Bankman-Fried's trial and materials from the examiner's work in the bankruptcy. The plaintiffs claim the firm was closely involved in key decisions. Fenwick previously moved to dismiss earlier claims filed in 2023.

The FTX customer cases were consolidated in 2023 in the Southern District of Florida. Separate claims filed in 2024 against FTX's bankruptcy counsel, Sullivan & Cromwell, were later dropped after coordination with the FTX estate. Plaintiffs continued to pursue claims against other third parties, including Fenwick. Bankman-Fried was convicted in 2023 and sentenced in 2024.

The court will decide whether to grant leave to amend. If approved, the expanded complaint would govern the claims against Fenwick & West in the multidistrict litigation.