Fenwick & West, the law firm that acted as lead outside counsel for FTX during its rapid expansion, has agreed to pay $54 million to settle claims from customers who lost money in the exchange's 2022 collapse. The settlement was filed in federal court in Miami and still needs approval from US District Judge K. Michael Moore. The firm has denied knowledge of FTX's fraudulent activities, stating it wasn't aware of the fraud.
The second wave's biggest payout
The $54 million figure makes this the largest settlement in a second wave of FTX-related class action resolutions. Other deals in that wave include $11.75 million from former FTX auditor Prager Metis and $420,000 from former Miami Heat player Udonis Haslem. Plaintiffs had alleged Fenwick helped craft strategies that facilitated the fraud. The firm hasn't admitted wrongdoing.
Recovery progress for customers
The FTX Recovery Trust distributed roughly $2.2 billion in March 2026, bringing cumulative repayments to nearly $10 billion. Several customer classes — including many US-based users — have reached full or near-full recovery levels. The collapse itself saw an estimated $11–13 billion in customer funds diverted to Alameda Research and erased $200 billion in global crypto market cap at the time.
Bankman-Fried's case rolls on
FTX founder Sam Bankman-Fried was convicted on fraud and conspiracy charges in 2024 and sentenced to 25 years in prison. He has appealed. The Fenwick settlement doesn't affect his case.
Next up: Judge Moore's sign-off. If he approves, that $54 million goes to customers — and one more chapter in the FTX saga closes, even if the law firm won't call it an admission.
