Fenwick to Pay $54M to Settle FTX Customer Claims

Fenwick & West agreed to pay $54 million to settle claims that the Silicon Valley law firm helped enable FTX’s alleged $8 billion fraud. The plaintiffs filed a preliminary settlement in U.S. District Court in Miami; a judge must approve the deal before it becomes final.

Plaintiffs allege Fenwick went beyond routine legal advice as FTX expanded, crafting strategies and legal structures that allowed customer funds to be commingled with Alameda Research, a trading firm closely linked to FTX’s founder, Sam Bankman-Fried. The complaint says that work facilitated misuse of customer assets before the exchange collapsed in November 2022. Fenwick has denied knowing of any fraud and disputed the allegations.

In court filings, plaintiffs’ counsel led by litigator David Boies argued the $54 million agreement was reasonable and would spare both sides prolonged, complex litigation. The filing noted the payment would add to funds available for creditor recovery if the court grants final approval after notice and any objections are resolved.

Fenwick wrote in a statement that 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 employs more than 500 lawyers, said it looks forward to moving past the dispute.

The settlement is part of a second wave of legal actions tied to FTX’s collapse. Earlier suits and asset-recovery efforts targeted former executives, trading counterparties and other service providers. A separate $525 million lawsuit against Fenwick and some partners remains pending, leaving further potential exposure for the firm.

Former FTX chief executive Sam Bankman-Fried was convicted in 2024 on charges related to the misuse of customer funds, was sentenced to 25 years in prison and has appealed. The FTX bankruptcy estate has overseen organized recovery efforts, distributing more than $5 billion to creditors and completing a third round of creditor repayments in September 2025 under a court-approved compensation plan.

If the Miami court approves the Fenwick settlement, the funds would be added to recoveries for creditors but would not affect criminal proceedings or appeals involving former FTX executives. Additional claims against other professional advisers remain pending as the bankruptcy estate and creditors’ lawyers continue recovery work.