A major Silicon Valley law firm has agreed to pay $54 million to settle allegations that it played a role in enabling the massive fraud at collapsed cryptocurrency exchange FTX.
Fenwick & West, which served as outside legal counsel to FTX during its rise to become one of the world’s largest crypto platforms, reached the preliminary settlement agreement on Friday. The deal was filed in federal court in Miami and requires judicial approval.
FTX customers who brought the lawsuit claimed that the technology-focused law firm “helped to craft and implement strategies that facilitated FTX’s fraud.” Fenwick had been a primary external legal advisor as the exchange gained prominence before its spectacular 2022 collapse and bankruptcy filing.
Lead plaintiff attorneys, including litigator David Boies, told the court the settlement with Fenwick was fair and would help avoid the uncertainties of prolonged and complicated litigation.
In its Friday statement, Fenwick maintained its innocence, saying 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 has more than 500 attorneys on staff, added that “we look forward to putting this matter behind us” and concentrating on its business operations.
This settlement represents part of a second round of agreements stemming from the FTX legal battles. Previous settlements involved two former FTX executives.
FTX founder Sam Bankman-Fried received a 25-year prison sentence in 2024 after being convicted of stealing $8 billion from customers through a massive fraud operation. He entered a not guilty plea and has filed an appeal of his conviction.
