Fenwick & West, the well-known Silicon Valley law firm that provided outside counsel to FTX as the cryptocurrency exchange grew into a major market participant, has agreed to pay $54 million to resolve claims brought by FTX customers. The proposed settlement was filed on Friday in the federal court in Miami, Florida, and remains subject to approval by a judge.
Plaintiffs maintain that Fenwick "helped to craft and implement strategies that facilitated FTX's fraud," alleging the firm's legal work was instrumental as the exchange rose to prominence. The case is part of a larger set of litigations stemming from FTX's collapse and bankruptcy in 2022.
Lead plaintiffs' counsel, including litigator David Boies, told the court the proposed Fenwick settlement is reasonable and would avoid the hazard of extended, complex litigation. The plaintiffs' attorneys argued that securing a resolution now would limit the time and expense associated with prolonged court battles.
In a statement issued on Friday, Fenwick 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, which employs more than 500 lawyers, added that it looks forward to resolving the issue and refocusing on its core business.
This agreement represents part of a second wave of settlements in the broad FTX litigation. Earlier accords in the litigation included settlements with two former FTX executives, reflecting multiple parallel resolutions as plaintiffs and defendants negotiate outcomes tied to the collapse.
Separately, FTX founder Sam Bankman-Fried was sentenced in 2024 to 25 years in prison after being convicted of stealing $8 billion from customers in a fraud scheme. Bankman-Fried pleaded not guilty and has appealed his conviction. Those criminal proceedings and related appeals exist alongside the civil litigation and settlements now unfolding.
Context and next steps
The settlement filing in Miami begins a judicial review process: a judge must approve the preliminary agreement before it becomes final. Plaintiffs' counsel argued the payment would prevent further lengthy litigation; Fenwick reiterated its denial of awareness of fraud and its commitment to move past the dispute.
Because the firm continues to dispute any wrongdoing, Fenwick's statement underscores that the payment represents resolution rather than an admission. The broader FTX litigation has seen multiple settlements and will continue to involve civil claims even as criminal appeals proceed.