Fenwick & West Agrees to $54M Settlement in FTX Fraud Lawsuit

Fenwick & West, the former lead outside counsel for collapsed crypto exchange FTX, has agreed to pay $54 million to settle claims tied to the platform’s alleged $8 billion fraud. The preliminary settlement was filed in federal court in Miami and still requires judicial approval.

The lawsuit accused the Silicon Valley law firm of helping FTX establish legal structures that allegedly enabled misuse of customer funds. Plaintiffs argued Fenwick went beyond traditional legal services by assisting in strategies that allowed customer assets to be commingled with Alameda Research, the trading firm closely linked to FTX.

David Boies, the prominent litigator representing the plaintiffs, described the agreement as a practical resolution that would avoid years of costly and complicated litigation. The settlement is considered one of the latest developments in the continuing fallout from the collapse of Sam Bankman-Fried’s crypto empire.

Fenwick denied any wrongdoing and stated it had no knowledge of fraudulent activities occurring inside FTX. The firm said it stands by the integrity of its legal work and emphasized that it consistently disputed allegations made in the lawsuit. The law firm, which employs more than 500 attorneys, also expressed hope that the settlement would help bring the matter to a close.

The agreement is part of a broader second phase of FTX-related legal actions aimed at recovering assets for creditors and victims. Despite the settlement, another lawsuit seeking $525 million from Fenwick and several of its partners remains ongoing, meaning the firm could still face additional legal exposure.

FTX founder Sam Bankman-Fried was sentenced in 2024 to 25 years in prison after being convicted of stealing billions of dollars from exchange customers. He is currently appealing the conviction.

Meanwhile, the FTX bankruptcy estate has distributed more than $5 billion to creditors through a court-approved recovery process, including a third repayment round completed in September 2025. Legal experts believe the Fenwick settlement could influence future agreements involving other professional advisors connected to the failed crypto exchange.