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Fenwick & West Agrees to $54 Million Settlement in FTX Fraud Litigation

By  |  May 26, 2026
FTX

Fenwick & West, a prominent U.S. law firm that advised collapsed cryptocurrency exchange FTX before its 2022 bankruptcy, has agreed to pay $54 million to settle claims brought by FTX customers who accused the firm of helping facilitate one of the largest financial frauds in U.S. history.

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    According to Reuters, the proposed settlement was filed Friday in federal court in Miami, Florida, and still requires approval from a judge.

    Fenwick, founded in Silicon Valley and widely known for representing technology companies, served as one of FTX’s primary outside law firms during the crypto exchange’s rapid rise in the digital asset industry. Plaintiffs in the case alleged that the firm “helped to craft and implement strategies that facilitated FTX’s fraud,” per Reuters.

    Attorneys representing FTX customers told the court that the agreement was fair and would help avoid prolonged and complicated litigation. The plaintiffs’ legal team includes prominent litigator David Boies.

    Fenwick denied any wrongdoing in a statement released Friday. The law firm said it “was not aware of the fraud at FTX, stands by the integrity of its legal work, and disputes wrongdoing of any kind, as we have consistently stated throughout this matter.” The firm added, “we look forward to putting this matter behind us” and returning its focus to business operations.

    According to Reuters, the settlement marks part of a broader second phase of agreements tied to litigation stemming from the collapse of FTX. Previous settlements had already been reached with two former FTX executives.

    FTX’s downfall triggered widespread fallout across the cryptocurrency industry after the company filed for bankruptcy in late 2022. Founder Sam Bankman-Fried was sentenced in 2024 to 25 years in prison after being convicted of stealing $8 billion from customers in what prosecutors described as a massive fraud scheme. He pleaded not guilty and is appealing the conviction, according to Reuters.

    Source: Reuters