Fenwick Agrees to Pay $54 Million to Settle FTX Customer Claims

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 trade’s $8 billion fraud.

The federal courtroom filed the preliminary settlement in Miami and requires judicial approval. Litigator David Boies, representing the plaintiffs, stated the deal was cheap and would spare each side extended, advanced litigation.

From Advisor to Defendant

Silicon Valley regulation 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 constructions that allowed buyer funds to be commingled with these of Alameda Research, FTX’s sister buying and selling agency.

Fenwick pushed again, sustaining the agency had no information of wrongdoing at FTX. In an announcement, the agency said:

“…was not conscious of the fraud at FTX, stands by the integrity of its authorized work, and disputes wrongdoing of any type, as we’ve persistently acknowledged all through this matter.”

The agency, which employs greater than 500 attorneys, stated it appears ahead to transferring previous the matter.

Second Wave of FTX Legal Actions

The $54 million deal varieties 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 go well with in opposition to Fenwick and its companions stays lively, leaving vital publicity unresolved.

The courtroom sentenced FTX founder Sam Bankman-Fried in 2024 to 25 years in jail for stealing $8 billion from prospects. He has appealed his conviction.

The chapter property has since distributed over $5 billion to creditors as a part of its structured restoration plan, accomplished a third creditor repayment round in September 2025, and operated underneath a court-approved FTX compensation plan that formalized the sufferer restoration course of.

Whether 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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