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.