Fenwick & West 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 an $8 billion fraud at FTX, a preliminary settlement filed in federal court in Miami shows. The payment remains subject to judicial approval before funds are disbursed.

The plaintiffs, represented by litigator David Boies, filed the settlement as part of broader efforts to recover assets for FTX’s former customers. In court filings, Boies argued the amount is reasonable and would spare both sides prolonged and complex litigation.

The complaint alleges Fenwick went beyond routine legal advice as FTX grew into a major cryptocurrency exchange before its collapse in November 2022. Plaintiffs contend the firm crafted legal strategies and built structures that allowed customer funds to be commingled with those of Alameda Research, FTX’s trading affiliate. Fenwick has denied those allegations.

Fenwick issued a statement saying it was ‘not aware of the fraud at FTX, stands by the integrity of its legal work, and disputes wrongdoing of any kind.’ The firm, which employs more than 500 lawyers, said it looks forward to moving past the matter.

The $54 million agreement is part of a second wave of legal actions tied to the FTX collapse and follows earlier asset-recovery lawsuits targeting former executives and counterparties. A separate $525 million suit naming Fenwick and several partners remains active, leaving additional potential exposure unresolved.

FTX founder Sam Bankman‑Fried was convicted by a jury and sentenced in 2024 to 25 years in prison after a finding that roughly $8 billion was taken from customer accounts; he has appealed. The FTX bankruptcy estate has distributed more than $5 billion to creditors and completed a third creditor repayment round in September 2025 under a court‑approved compensation plan.

The Miami court’s preliminary filing schedules a final approval hearing. It is not yet known whether other professional advisors connected to FTX will reach similar settlements.