Fenwick & West, a former director of FTX, agreed to pay $54 million to settle the claims. The allegations allege the company facilitated an $8 billion exchange fraud.
The trial court issued a preliminary injunction in Miami and is seeking the court’s approval. Attorney David Boies, representing the defendants, said the agreement was reasonable and would save both sides from lengthy and difficult litigation.
From Advisor to Adviser
Silicon Valley law firm Fenwick advised FTX as it grew into one of the world’s largest trading platforms before it collapsed in November 2022.
The plaintiffs allege the company went beyond normal legal advice, saying Fenwick created procedures that facilitated FTX’s fraud and built laws that allowed client funds to be matched with those of Alameda Research, FTX’s trading company.
Fenwick pushed back, maintaining the company had no knowledge of wrongdoing on FTX. In a word, the company he said:
I was not aware of fraud at FTX, it represents the integrity of its legal profession, and I oppose any kind of wrongdoing, as we have repeatedly said in this case.
The firm, which has more than 500 lawyers, said it expects to move forward with the matter.
Vice President of FTX Legal Actions
The $54 million settlement is part of the second largest legal settlement. It follows already asset recovery casesdirect former governors and their colleagues. A separate $525 million lawsuit against Fenwick and its partners is still active, leaving much of the exposure unresolved.
The court sentenced FTX founder Sam Bankman-Fried in 2024 to 25 years in prison for stealing $8 billion from clients. He has appealed his decision.
The bankruptcy estate has existed ever since distributed more than $5 billion to borrowers as part of his recovery plan, completed the third repayment in September 2025, and it worked under a court-approved FTX payment plan which set the stage for the recovery of the injured.
Whether the Fenwick deal signals further stability from other advisers tied to FTX remains to be seen as the second wave of litigation continues.
A note Fenwick Agrees to Pay $54 Million to Settle FTX Customer Claims appeared for the first time BeInCrypto.
