FTX’s Former Law Firm Agrees To $54 Million Settlement

[AIcash]

Fenwick & West, the primary outside law firm that advised FTX before its collapse, has agreed to pay $54 million to settle a class action lawsuit brought by former FTX customers. Plaintiffs accused the firm of helping create legal structures that allegedly enabled the exchange to obscure the misuse and commingling of customer funds with Alameda Research.

The lawsuit argued that Fenwick played a central role in building the legal framework that allowed FTX to operate while avoiding stricter regulatory oversight, including strategies tied to money transmitter licensing requirements. While the law firm has not admitted wrongdoing, the settlement adds another major chapter to the ongoing legal fallout surrounding one of the largest collapses in crypto history.

The agreement still requires court approval, and Fenwick continues to face a separate $525 million lawsuit tied to its role advising FTX during its rapid rise and collapse.

[nihalsari]

the ftx collapse slowly evolving into a legal cinematic universe where every advisor consultant and lawyer gets their own lawsuit arc