Silicon Valley Law Firm Fenwick & West Settles FTX Fraud Claims for $54 Million
Plaintiffs motion for preliminary approval of the second tranche of settlements, provisional certification of the proposed settlement class, and approval of the proposed schedule. Source: (). The lawsuit is part of the broader multidistrict litigation known as In Re: FTX Cryptocurrency Exchange Collapse Litigation. Attorney David Boies represented plaintiffs in the case. Fenwick initially sought dismissal before engaging in settlement talks. Under the terms, the $54 million will be deposited into an escrow account within 120 days of initial court approval. Plaintiffs attorneys said the deal was reasonable given the complexity and cost of continued litigation. FTX collapsed in November 2022, triggering bankruptcy and exposing a fraud that wiped out billions in customer funds. Bankman-Fried was sentenced in 2024 to 25 years in prison for stealing roughly $8 billion from customers. The Fenwick agreement is part of a second wave of class-action settlements tied to the FTX collapse. Earlier deals involved FTX executives Caroline Ellison, Nishad Singh, and Gary Wang, as well as celebrity promoters. Auditor Prager Metis separately agreed to pay approximately $11.75 million in related resolutions, pushing combined professional services payouts to roughly $66 million. For FTX victims, the settlement adds to a stream of partial recoveries that remain small relative to total