Fenwick & West LLP, the primary law firm for the collapsed cryptocurrency exchange FTX, agreed Friday to pay $54 million to settle a class action lawsuit filed by former customers.
The plaintiffs alleged the Silicon Valley firm helped FTX obscure the misuse of customer funds by creating legal entities and structures to hide the commingling of assets between FTX and its trading arm, Alameda Research.
The settlement, which requires approval by a US judge, marks the latest chapter in the legal fallout from FTX's dramatic collapse in 2022.
Separately, the FTX Recovery Trust has faced criticism from creditors for liquidating assets at steep discounts. The Trust sold a 5% stake in AI company Cursor for about $200,000 in 2023, missing out on potential profits when that stake's value soared to roughly $3 billion by April 2026.