The lawsuit against Fenwick & West, first filed in 2023 and later amended, accused the firm of playing a “key and crucial role” in enabling FTX’s fraud.

FTX users alleged that Fenwick provided “substantial assistance” by creating and approving business structures that allowed misconduct to occur. The complaint claimed the firm advised FTX on avoiding money transmitter registration requirements and had insight into the commingling of funds between FTX and Alameda Research.

Fenwick denied the allegations, arguing it provided routine legal services and had no knowledge of fraudulent activity. In November, a federal judge rejected Fenwick’s motion to dismiss, allowing the case to move forward before the newly proposed settlement.