Fenwick & West, the former lead outside counsel for FTX, has agreed to a $54 million settlement over allegations of enabling the exchange's $8 billion fraud. The preliminary settlement, filed in a Miami federal court, awaits judicial approval. Plaintiffs, represented by litigator David Boies, claim the law firm went beyond standard legal advice, allegedly crafting strategies that facilitated FTX's fraudulent activities and allowed the commingling of customer funds with Alameda Research.
Fenwick maintains it was unaware of any wrongdoing at FTX and stands by the integrity of its legal work. This settlement is part of a broader wave of legal actions following FTX's collapse in November 2022. A separate $525 million lawsuit against Fenwick and its partners remains active. Meanwhile, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison in 2024, with over $5 billion distributed to creditors as part of the bankruptcy estate's recovery plan.
Fenwick & West Settles FTX Fraud Claims for $54 Million
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