FTX Lawyers Pay $54M In Settlement Over Services Rendered To Exchange – Details
In a noteworthy growth, US legislation agency Fenwick & West has agreed to pay $54 million to settle claims arising from its authorized providers for the defunct crypto trade FTX. The proposed settlement, filed in federal court docket in Miami on Friday, resolves allegations from FTX prospects who accused the Silicon Valley-based agency of facilitating misconduct tied to one of many largest monetary frauds in US historical past.
Fenwick Denies Knowledge Of FTX Illicit Activities Despite Settlement
According to court docket filings as reported by Reuters, Fenwick & West served as a lead outdoors counsel for FTX throughout the trade’s speedy growth into a worldwide crypto buying and selling platform. Plaintiffs within the class motion lawsuit alleged the agency “helped to craft and implement methods that facilitated FTX’s fraud,” accusing the legal professionals of helping with regulatory and operational constructions later tied to the misuse of buyer funds.
The proposed settlement settlement nonetheless requires approval from US District Judge Okay. Michael Moore in Miami. Attorneys representing FTX prospects, together with distinguished litigator David Boies, argued the deal was cheap and would stop extended and dear litigation.
However, Fenwick rejected allegations that it knowingly participated in fraudulent conduct. In a public assertion, the legislation agency mentioned it “was not conscious of the fraud at FTX,” including that it stood by the integrity of its authorized work. The $54 million settlement marks the biggest settlement in a second wave of FTX-related class motion resolutions.
Other settlements embrace an $11.75 million cost from former FTX auditor Prager Metis and a $420,000 settlement involving former Miami Heat participant Udonis Haslem, who promoted the trade.
The Journey So Far
FTX collapsed in November 2022 after revelations that an estimated $11- $13 billion in buyer funds had allegedly been diverted to its sister buying and selling agency, Alameda Research. The trade’s chapter triggered widespread panic throughout the digital asset market and erased $200 billion in world crypto market cap.
In 2024, founder Sam Bankman-Fried was convicted on fraud and conspiracy costs and sentenced to 25 years in jail. Although he pleaded not responsible and has since appealed the conviction, claiming the preliminary trial was unfairly prejudiced towards him.
Meanwhile, the FTX Recovery Trust has continued efforts to reimburse affected collectors underneath the corporate’s Chapter 11 restructuring course of. In March 2026, the property introduced a fourth distribution of roughly $2.2 billion, bringing cumulative repayments to eligible claimants near $10 billion. Several buyer courses, together with many US-based customers, have reportedly reached full or near-full restoration ranges underneath the court-approved reimbursement plan.
