Law firm Fenwick & West has agreed to settle a lawsuit brought by former users of FTX, who alleged the firm played a key role in the fraud that led to the exchange’s collapse.
In a joint filing with a Florida federal court, Fenwick and lawyers for FTX users said they plan to submit the proposed settlement for approval on Feb. 27, asking the court to pause all deadlines in the case.
The settlement terms were not disclosed, but the filing follows the court’s November decision allowing the users’ amended complaint to proceed after rejecting Fenwick’s motion to dismiss.
FTX users accused Fenwick of playing “a key and crucial role in the most important aspects of why and how the FTX fraud was accomplished,” arguing the firm provided substantial assistance in structuring the business.
The lawsuit claimed Fenwick advised FTX on avoiding money transmitter registrations and had visibility into the commingling of funds between FTX and Alameda Research.
Fenwick has denied wrongdoing, arguing it provided routine and lawful legal services and was “not liable for aiding and abetting a fraud it knew nothing about.”
The case forms part of broader litigation following FTX’s collapse in late 2022, after users also sued promoters and service providers, including a separate claim against Sullivan & Cromwell that was later dropped.