BlockBeats News, May 16th - According to Bloomberg, legal action regarding the FTX collapse is still ongoing. On May 14th local time, a new lawsuit was filed in a U.S. federal court, accusing the Silicon Valley law firm Fenwick & West of playing a "key facilitating role" in the FTX collapse, helping to cover up client fund misuse, misleading investors, and delaying fund withdrawal.

The lawsuit was filed by multiple FTX victims from different countries, seeking approximately $525 million in damages. The plaintiffs claim that the law firm not only provided routine legal services within the FTX system but also participated in establishing shell companies, designing fund flow structures, and assisting in implementing information and communication management mechanisms to conceal traces of fund embezzlement.

The case also references a bankruptcy investigation report, stating that Fenwick lawyers were "deeply embedded" in the FTX and its affiliated transaction structures, including assisting in setting up a complex fund arrangement system between FTX and Alameda Research.

Earlier, in August 2023, a group of FTX clients formally sued Fenwick & West, accusing them of "assisting FTX in committing fraud." In 2025, FTX investors continued to include Fenwick as a key defendant, and the litigation entered a larger-scale class action phase. In February 2026, Fenwick reached a preliminary settlement framework with FTX victims (subject to court approval).