FTX Clienst Don Sue Fenwick & West for Crypt Fraud Role
FTX customers dem don put one updated complaint for Southern District of Florida as part of one multi-district lawsuit against law firm Fenwick & West because dem claim say dem get big role for how crypto exchange take enta wahala and big fraud wey reach billions of dollars. Di people wey dey complain talk say di law firm do pass wetin normally dey do for legal service, dem create conflicted companies like Alameda Research and FTX, and help put forward unregistered securities and racketeering. Di complaint use evidence from Sam Bankman-Fried trial talk say Fenwick sabi di fraud tori well and e help within the gbege. Di customers want add more things to dia complaint, no gree Fenwick plan to dismiss di case, and want make court hold Fenwick responsible for trust break and negligence for work.
Bearish
Dis lawsuit dey height legal and regulatori risk dem around FTX and di advisors dem. Dis accusation say Fenwick & West play big role for di exchange fraud fit make investor confidence fall more. For short term, traders fit react to di increased wahala wit sell-offs. Historically, big legal allegations — like SEC case against Ripple — don cause market dips. But for long term, clearer liability fit lead to better compliance standards, but immediate feeling still negative.