Fenwick & West LLP has agreed to a $54 million settlement in a class-action lawsuit filed by former FTX customers, alleging the law firm facilitated FTX's misappropriation of funds. The lawsuit claims Fenwick advised FTX on creating structures to hide fund commingling with Alameda Research and evade licensing requirements. The settlement, announced Friday, awaits approval from a U.S. judge.
This settlement is part of the ongoing legal fallout from FTX's 2022 collapse, highlighting increased regulatory scrutiny on professional roles in crypto insolvencies. The FTX Recovery Trust, responsible for asset distribution, has faced criticism over asset management practices, with a notable undervaluation in a 2023 sale of a stake in AI company Cursor. The next distribution is scheduled for May 29.
Fenwick & West Settles $54M Lawsuit Over FTX Allegations
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