Fenwick to Settle Class Action Over Role in FTX Scandal

Crypto News Regulation

Fenwick & West to Settle Class Action Over Role in FTX Scandal

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 03, 2026

Key Takeaways

Fenwick & West and FTX users reached a proposed settlement in a lawsuit accusing the firm of aiding FTX’s alleged fraud;
The deal will be submitted for court approval on February 27, with all case motions paused during the review period;
The 2023 lawsuit claimed Fenwick’s legal advice helped FTX bypass rules and mix funds with Alameda; the firm denied wrongdoing.

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Fenwick & West to Settle Class Action Over Role in FTX Scandal

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Law firm Fenwick & West and former users of the failed crypto exchange FTX have reached a proposed settlement in a case accusing the firm of helping to enable fraud on the platform.

Both parties informed a federal court in Florida on January 30 that they plan to submit the agreement for approval on February 27.

While details of the deal were not shared, the lawyers asked the court to pause all active deadlines and motions while the settlement is reviewed.

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The case is part of a class-action effort that began after FTX collapsed in 2022. Multiple lawsuits have been filed against the exchange, public figures who endorsed it, and companies that worked with it.

The lawsuit against Fenwick, filed in 2023 and later updated, alleged that the firm was deeply involved in how the alleged fraud was structured.

According to the complaint, Fenwick gave legal support that made it easier for FTX to operate without registering as a money transmitter and “had visibility into the commingling of funds” between FTX and its sister firm, Alameda Research.

The plaintiffs argued that the fraud “was only possible” because of the legal help Fenwick provided.

In response, Fenwick asked the court to dismiss the case. The firm said it had no knowledge of any fraud and only provided standard legal advice. The firm maintained that its services were lawful and routine.

Sam Bankman-Fried, the former founder of FTX, recently began supporting US President Donald Trump while criticizing former President Joe Biden. What did he say? Read the full story.