FTX users and Fenwick settle lawsuit over FTX fraud

FTX users and Fenwick & West reached a confidential settlement over claims the firm aided FTX’s fraud. The agreement awaits court approval, with all case deadlines paused.

FTX users and the law firm Fenwick & West have reached a proposed settlement in a lawsuit alleging the firm played a key role in facilitating the fraud that led to the collapse of the FTX cryptocurrency exchange. The class-action suit, filed in federal court in Florida, accused Fenwick of providing substantial assistance to FTX in structuring its operations. This allegedly enabled the misuse of customer funds and helped the exchange avoid regulatory requirements. The settlement terms remain confidential. Both parties have informed the court they intend to submit the agreement for approval on February 27 and have requested a pause on all deadlines and motions until the settlement is finalized. This case is part of a broader effort by FTX users to hold advisers and partners accountable after the exchange's 2022 collapse, which left millions unable to access their assets.