Customers of bankrupt crypto exchange FTX seek to update lawsuit against law firm Fenwick & West, claiming it played a central role in FTX’s collapse. The fraud was described as one of the biggest in US history, leading to a multi-district class-action lawsuit against FTX, celebrities, and other companies.

FTX users allege that Fenwick provided substantial assistance by creating structures allowing fraud. The criminal trial of former FTX CEO Sam Bankman-Fried revealed new information about Fenwick’s involvement. An independent examiner in FTX’s bankruptcy proceedings found Fenwick deeply intertwined in FTX Group’s wrongdoing.

The proposed amended complaint accuses Fenwick of violating securities laws in Florida and California over FTX Token (FTT). The group claims Fenwick was involved in promoting and facilitating the sale of unregistered securities related to FTT. Fenwick denied allegations and moved to dismiss previous complaints, citing the scope of client representation.

FTX users dropped a lawsuit against law firm Sullivan & Cromwell due to lack of evidence. The group initially sued both Fenwick & West and Sullivan & Cromwell for their involvement with FTX. The lawsuit against Sullivan & Cromwell was dropped, while the case against Fenwick continues to evolve with new claims being added.

Read more at Cointelegraph: FTX Customers Look To Update Lawsuit Against Fenwick & West