FTX legal adviser Fenwick settles customer lawsuit for $54m
Fenwick & West has agreed to pay $54 million to settle a class action lawsuit filed by former FTX customers who accused the law firm of helping facilitate fraud at the collapsed cryptocurrency exchange.Fenwick & West has agreed to pay $54 million to settle claims that it helped FTX conceal the misuse of customer funds.Former FTX customers alleged that the law firm advised on legal structures tied to Alameda Research, North Dimension, and unlicensed financial operations. According to court filings tied to the proposed settlement, the Silicon Valley law firm reached the agreement after initially trying to dismiss the case brought by former FTX users in 2023. The settlement still requires approval from a U.S. judge before it can take effect. Former customers of the exchange alleged that Fenwick played a central role in legal and corporate arrangements that allowed FTX and its affiliated trading firm, Alameda Research, to move and commingle customer funds without proper safeguards. Plaintiffs claimed the firm helped create structures and entities designed to obscure how customer assets were handled inside the FTX group. Court records from the original complaint alleged that Fenwick also advised FTX on legal strategies intended to avoid money transmitter licensing requirements in some jurisdictions. Earlier