Fenwick Agrees to Pay $54 Million to Settle FTX Customer Claims

Fenwick & West, FTX’s former lead outside counsel, agreed to pay $54 million to settle claims. The claims allege that the firm helped enable the exchange’s $8 billion fraud.

The federal court filed the preliminary settlement in Miami and requires judicial approval. Litigator David Boies, representing the plaintiffs, said the deal was reasonable and would spare both sides prolonged, complex litigation.

From Advisor to Defendant

Silicon Valley law firm Fenwick advised FTX as it grew into one of the largest crypto platforms globally before its November 2022 collapse.

Plaintiffs alleged the firm went beyond routine legal counsel, arguing Fenwick crafted strategies that enabled FTX’s fraud and built legal structures that allowed customer funds to be commingled with those of Alameda Research, FTX’s sister trading firm.

Fenwick pushed back, maintaining the firm had no knowledge of wrongdoing at FTX. In a statement, the firm said:

“…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, which employs more than 500 lawyers, said it looks forward to moving past the matter.

Second Wave of FTX Legal Actions

The $54 million deal forms part of a broader second wave of agreements in the legal saga. It follows earlier asset-recovery lawsuits targeting former executives and counterparties. A separate $525 million suit against Fenwick and its partners remains active, leaving significant exposure unresolved.

The court sentenced FTX founder Sam Bankman-Fried in 2024 to 25 years in prison for stealing $8 billion from customers. He has appealed his conviction.

The bankruptcy estate has since distributed over $5 billion to creditors as part of its structured recovery plan, completed a third creditor repayment round in September 2025, and operated under a court-approved FTX compensation plan that formalized the victim recovery process.

Whether the Fenwick agreement signals further settlements from other professional advisors tied to FTX remains to be seen as the litigation’s second wave continues.