FTX users and Fenwick & West have reached a proposed settlement over a 2023 lawsuit alleging the law firm helped carry out the fraud that led to the crypto exchange\u2019s collapse over three years ago. <\/p>\n
Fenwick and lawyers representing FTX users said in a joint filing<\/a> to a Florida federal court on Friday that they plan to lodge the proposed settlement with the court for its approval on Feb. 27.<\/p>\n The filing did not disclose the specific terms of the settlement, but both parties asked the court to pause all deadlines and pending motions in the class-action lawsuit ahead of the settlement filing.<\/p>\n The FTX users\u2019 lawsuit against Fenwick is part of a multidistrict class-action lawsuit filed after FTX collapsed in late 2022. Users have brought lawsuits against the exchange, celebrities accused of promoting it, and multiple companies that worked with the exchange.<\/p>\n The lawsuit, first filed in 2023 and updated in August<\/a>, accused Fenwick of playing \u201ca key and crucial role in the most important aspects of why and how the FTX fraud was accomplished.\u201d<\/p>\n The users claimed the fraud at FTX \u201cwas only possible because Fenwick provided \u2018substantial assistance\u2019 by creating and approving the structures that allowed numerous frauds.\u201d<\/p>\n The lawsuit claimed Fenwick advised FTX on how to structure its business to avoid money transmitter registrations and \u201chad visibility into the commingling of funds and blurred boundaries\u201d between FTX and Alameda Research.<\/p>\n Fenwick sought to dismiss<\/a> the lawsuit, arguing it was \u201cnot liable for aiding and abetting a fraud it knew nothing about\u201d and asserted it provided \u201croutine and lawful legal services.\u201d\u00a0<\/p>\n Related: <\/strong><\/em>Sam Bankman-Fried ramps up Trump support following Ellison\u2019s release<\/strong><\/em><\/a><\/p>\n The court allowed the FTX users\u2019 amended complaint to proceed in November, denying Fenwick\u2019s motion to dismiss.<\/p>\n Fenwick & West and lawyers for FTX users, the Moskowitz Law Firm, did not immediately respond to a request for comment.<\/p>\n <\/template><\/p>\n The FTX users had also sued Sullivan & Cromwell, FTX\u2019s former outside counsel, in February 2024, accusing it of playing a role in FTX\u2019s multibillion-dollar fraud, but voluntarily dismissed<\/a> the complaint eight months later over a lack of evidence.<\/p>\n Legal Panel: <\/strong><\/em>XRP win leaves Ripple a \u2018bad actor\u2019 with no crypto legal precedent set<\/strong><\/em><\/a><\/p>\n <\/template><\/div>\n Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph\u2019s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https:\/\/cointelegraph.com\/editorial-policy<\/a><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":" The plaintiffs filed the lawsuit in 2023, accusing the law firm of playing \u201ca key and crucial role” in “how […]<\/p>","protected":false},"author":5,"featured_media":61138,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[220],"tags":[],"class_list":["post-61137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tien-dien-tu"],"acf":[],"_links":{"self":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/posts\/61137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/comments?post=61137"}],"version-history":[{"count":0,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/posts\/61137\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/media\/61138"}],"wp:attachment":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/media?parent=61137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/categories?post=61137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/tags?post=61137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![](\"https:\/\/s3.cointelegraph.com\/uploads\/2026-02\/019c214f-42e3-7f54-b152-67f104539079.png\")