Fenwick & West, FTX’s former lead outdoors counsel, agreed to pay $54 million to settle claims. The claims allege that the agency helped allow the alternate’s $8 billion fraud.
The federal court docket filed the preliminary settlement in Miami and requires judicial approval. Litigator David Boies, representing the plaintiffs, mentioned the deal was affordable and would spare either side extended, complicated litigation.
From Advisor to Defendant
Silicon Valley legislation agency Fenwick suggested FTX because it grew into one of many largest crypto platforms globally earlier than its November 2022 collapse.
Plaintiffs alleged the agency went past routine authorized counsel, arguing Fenwick crafted methods that enabled FTX’s fraud and constructed authorized buildings that allowed buyer funds to be commingled with these of Alameda Analysis, FTX’s sister buying and selling agency.
Fenwick pushed again, sustaining the agency had no information of wrongdoing at FTX. In a press release, the agency mentioned:
“…was not conscious of the fraud at FTX, stands by the integrity of its authorized work, and disputes wrongdoing of any variety, as now we have persistently acknowledged all through this matter.”
The agency, which employs greater than 500 legal professionals, mentioned it seems ahead to transferring previous the matter.
Second Wave of FTX Authorized Actions
The $54 million deal types a part of a broader second wave of agreements within the authorized saga. It follows earlier asset-recovery lawsuits focusing on former executives and counterparties. A separate $525 million swimsuit in opposition to Fenwick and its companions stays energetic, leaving important publicity unresolved.
The court docket sentenced FTX founder Sam Bankman-Fried in 2024 to 25 years in jail for stealing $8 billion from clients. He has appealed his conviction.
The chapter property has since distributed over $5 billion to collectors as a part of its structured restoration plan, accomplished a 3rd creditor reimbursement spherical in September 2025, and operated underneath a court-approved FTX compensation plan that formalized the sufferer restoration course of.
Whether or not the Fenwick settlement alerts additional settlements from different skilled advisors tied to FTX stays to be seen because the litigation’s second wave continues.
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