The law firm agreed to pay $54 million to resolve allegations it aided FTX’s fraud by creating legal structures to hide fund misuse.
Fenwick & West LLP will pay $54 million to settle a 2023 class action lawsuit brought by former FTX customers. The plaintiffs accused the firm of facilitating FTX’s fraud by designing legal entities and strategies that obscured the commingling of customer funds with Alameda Research, FTX’s trading arm.
The settlement follows a failed attempt by Fenwick to dismiss the case. It remains subject to approval by a U.S. judge. The firm still faces a separate $525 million lawsuit over its role in FTX’s 2022 collapse, which triggered widespread losses in crypto markets.
The agreement marks another legal resolution tied to FTX’s downfall, as creditors and regulators continue to pursue claims against advisors and executives linked to the exchange.