Fenwick & West has agreed to pay $54 million to settle a category motion lawsuit filed by former FTX prospects who accused the legislation agency of serving to facilitate fraud on the collapsed cryptocurrency trade.
Abstract
- Fenwick & West has agreed to pay $54 million to settle claims that it helped FTX conceal the misuse of buyer funds.
- Former FTX prospects alleged that the legislation agency suggested on authorized buildings tied to Alameda Analysis, North Dimension, and unlicensed monetary operations.
In accordance with courtroom filings tied to the proposed settlement, the Silicon Valley legislation agency reached the settlement after initially attempting to dismiss the case introduced by former FTX customers in 2023. The settlement nonetheless requires approval from a U.S. decide earlier than it may possibly take impact.
Former prospects of the trade alleged that Fenwick performed a central function in authorized and company preparations that allowed FTX and its affiliated buying and selling agency, Alameda Analysis, to maneuver and commingle buyer funds with out correct safeguards. Plaintiffs claimed the agency helped create buildings and entities designed to obscure how buyer property have been dealt with contained in the FTX group.
Courtroom information from the unique grievance alleged that Fenwick additionally suggested FTX on authorized methods meant to keep away from cash transmitter licensing necessities in some jurisdictions.
Earlier filings from August 2025 added additional accusations in opposition to the legislation agency after plaintiffs sought permission to amend their grievance utilizing proof from Sam Bankman-Fried’s legal trial and the FTX chapter course of. In that proposed amended submitting, former FTX prospects argued that testimony from senior insiders and findings from an impartial chapter examiner confirmed Fenwick had change into “deeply intertwined” with the trade’s operations.
On the time, plaintiffs cited testimony from former FTX executives Nishad Singh, Gary Wang, and Caroline Ellison, who allegedly described inner practices involving improper loans, false statements, and misuse of buyer funds. In accordance with the submitting, Singh advised the courtroom that Fenwick had been knowledgeable about a few of these actions and suggested on authorized buildings linked to them.
Different allegations within the amended submitting accused the legislation agency of serving to set up shell firms linked to Alameda Analysis and North Dimension, an entity used to route buyer deposits. Plaintiffs additionally pointed to the usage of encrypted and auto-deleting Sign chats by FTX executives, which they mentioned Fenwick knew about throughout its authorized illustration of the trade.
On the similar time, the submitting launched securities legislation claims beneath Florida and California statutes tied to the sale of FTT tokens and different FTX-related funding merchandise. Plaintiffs argued that Fenwick attorneys participated in designing and facilitating these choices for buyers.
Authorized fallout from FTX collapse continues
Elsewhere within the FTX fallout, former FTX head of engineering Nishad Singh agreed in April 2026 to pay a $3.7 million disgorgement to settle costs introduced by the U.S. Commodity Futures Buying and selling Fee.
In accordance with the CFTC, Singh additionally accepted a five-year buying and selling ban and an eight-year registration ban as a part of the supplemental consent order tied to the misuse of buyer funds at FTX. CFTC enforcement director David Miller mentioned the decision accounted for Singh’s cooperation with investigators.
Individually, the FTX Restoration Belief has continued distributing recovered property to former prospects and collectors. In March, the Belief distributed $2.2 billion to claimants, whereas one other reimbursement spherical has been scheduled for Might 29.
