FTX users and the law firm Fenwick & West have reached a proposed settlement agreement in the 2023 lawsuit alleging that the firm assisted in the fraud that led to FTX’s collapse three years ago. The parties filed a joint petition with the Florida federal court on Friday, notifying that they will present the settlement details for court approval on February 27. The settlement terms were not disclosed, but a stay of all deadlines and pending motions in the case was requested.
An excerpt from the joint filing on Friday stipulates that Fenwick and FTX users intended to settle. Source: CourtListener
FTX Fraud Case and Fenwick & West’s Role
The lawsuit is part of the multidistrict class action process following FTX’s collapse at the end of 2022. Users claimed that Fenwick played a role in key elements of the fraud, structured FTX’s business to avoid money transmitter registrations, and turned a blind eye to commingling funds with Alameda Research. Fenwick had sought dismissal by arguing it provided routine and legal services, but the court allowed the case to proceed in November.
- Claims: FTX’s legal structure concealed the fraud.
- Fenwick Defense: Standard consulting services.
- Court Decision: The case proceeded in November 2025.
Similar Settlements: Sullivan & Cromwell Example
A similar lawsuit against Sullivan & Cromwell was filed but dismissed due to insufficient evidence. This settlement may signal a new era in lawsuits by FTX victims against law firms.
How Did the FTX Collapse Affect the BTC Market?
FTX’s 2022 collapse, as we examined on our BTC detailed analysis pages, led to sharp drops in BTC price. Market confidence was shaken, a liquidity crisis occurred. Compared to current BTC futures data, these events still affect volatility. The settlement could ignite crypto regulation debates.
Frequently Asked Questions About the FTX Fenwick Settlement
What are the settlement terms? Not yet disclosed, the court will see them on February 27.
What does the lawsuit cover? Fenwick’s alleged role in the FTX fraud.
Will it affect other firms? The Sullivan case was dismissed, but it could set a precedent.
Source: https://en.coinotag.com/ftx-users-settle-with-fenwick-west
