Fenwick & West agreed to pay $54 million to settle FTX customer claims, subject to approval by U.S. District Judge K. Michael Moore. The settlement is filed in the Southern District of Florida and is part of the multidistrict litigation over the FTX collapse. The agreement does not include an admission of wrongdoing. Plaintiffs alleged the firm helped craft strategies that enabled FTX to commingle customer funds with Alameda Research and helped create legal structures that obscured misuse of customer assets. Fenwick denied the allegations, said it was unaware of fraud, and agreed to settle to move forward. The $54 million will be deposited into escrow within 120 days of initial court approval, and plaintiffs sought preliminary approval and class certification for a second settlement tranche.
"Fenwick & West agreed to pay $54 million to settle FTX customer claims, pending approval by Judge K. Michael Moore. The deal brings combined professional services payouts tied to the FTX collapse to roughly $66 million. The proposed settlement was filed this week in the Southern District of Florida and requires final approval from U.S. District Judge K. Michael Moore. The agreement does not admit wrongdoing by the firm."
"Plaintiffs alleged Fenwick went well beyond standard legal advice, claiming the firm helped craft strategies that enabled FTX to commingle customer funds with those of Alameda Research, the affiliated trading firm controlled by FTX founder Sam Bankman-Fried. They described the firm's alleged role as creating shadowy entities and legal structures that obscured the misuse of customer assets. Fenwick wholeheardily denied the allegations."
"The firm said it was not aware of any fraud at FTX, stands by its legal work, and agreed to settle in order to move forward with its business. Under the terms, the $54 million will be deposited into an escrow account within 120 days of initial court approval. Plaintiffs' attorneys said the deal was reasonable given the complexity and cost of continued litigation."
"A separate $525 million lawsuit filed in May 2026 in D.C. by 20 FTX victims names Fenwick and several of its partners. The lawsuit is part of the broader multidistrict litigation known as In Re: FTX Cryptocurrency Exchange Collapse Litigation. Plaintiffs' motion seeks preliminary approval of the second tranche of settlements, provisional certification of the proposed settlement class, and approval of the proposed schedule."
Read at news.bitcoin.com
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