FTX users reach settlement agreement with Fenwick law firm over fraud allegations

CycleProphet · 2026-02-03T04:18:09+00:00

FTX users have reached a settlement with Fenwick & West LLP, filing a class-action lawsuit regarding their role in the FTX fraud case. Both parties will submit the agreement for approval on February 27. Fenwick previously argued ignorance, but the court dismissed their motion. The terms of the settlement have not been made public.

CycleProphet

2026-02-03 04:18:09

Abstract generation in progress

Deep Tide TechFlow News, on February 3rd, according to Cointelegraph, FTX users and Fenwick & West law firm have reached a settlement agreement regarding the class action lawsuit filed in 2023. Both parties plan to submit the settlement agreement to the U.S. District Court in Florida for approval on February 27th.

The lawsuit alleges that Fenwick law firm played a “key role” in FTX’s fraud, stating that it “provided substantial assistance” and created and approved the structures that enabled multiple fraudulent activities. The plaintiffs also accuse the law firm of advising FTX on how to circumvent money transfer registration requirements and of “being aware of the mixing of funds and blurred boundaries between FTX and Alameda Research.”

Fenwick previously attempted to dismiss the lawsuit, claiming it was “unaware” and only provided “routine legal services,” but the court rejected this motion in November of last year. The specific terms of the settlement agreement have not yet been disclosed.

This case is part of multiple regional class actions following FTX’s collapse. Users also sued FTX’s former external legal counsel, Sullivan & Cromwell, but later withdrew the suit due to lack of evidence.

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