Law firm faces $525m lawsuit over alleged involvement in FTX collapse
21.05.2026
A major international law firm is at the center of a high-profile lawsuit related to the collapse of cryptocurrency exchange FTX. A $525 million class action lawsuit has been filed against it, alleging that the firm allegedly facilitated fraudulent schemes that led to the platform's collapse and massive investor losses.According to the suit, the law firm is accused of providing advice and legal support that the plaintiffs believe allowed FTX management to hide financial problems and mislead both clients and regulators. The lawsuit emphasizes that the firm allegedly participated in developing structures that allowed it to circumvent existing transparency and risk management requirements.FTX, formerly one of the world's largest crypto exchanges, went bankrupt, leaving more than a million users without access to their funds. Total reported investor losses exceed $8 billion. Attention to the role of outside counsel in the process has intensified after regulators and the judiciary drew attention to the importance of legal opinions and advice in shaping FTX's business practices.The law firm categorically denies all allegations, saying it has complied with all professional and ethical standards. Nevertheless, the proceedings have already caused considerable resonance in the professional community and may lead to a revision of the standards of responsibility of legal advisors in the financial and cryptocurrency sectors.