Fenwick & West Agrees to $54 Million FTX Settlement

[kevin1]

Fenwick & West, the primary law firm that advised FTX before its collapse, has agreed to pay $54 million to settle a class action lawsuit brought by former customers of the cryptocurrency exchange. The lawsuit alleges that the firm played a significant role in enabling the structures and legal arrangements that allowed FTX to misuse customer funds while obscuring transfers between the exchange and its affiliated trading firm, Alameda Research.

While Fenwick has not admitted wrongdoing, the settlement represents another major chapter in the ongoing fallout from one of the largest corporate failures in crypto history. The case highlights growing questions about the responsibilities of professional service providers—including lawyers, auditors, and consultants—when advising rapidly growing companies. The proposed settlement still requires court approval, but it signals that accountability for the FTX collapse is extending beyond former executives and into the broader network of firms that supported the exchange's operations.

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ftx may be gone, but the legal, financial, and governance consequences are still unfolding years later

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