Fenwick & West, the Silicon Valley law firm that served as lead outside counsel to FTX, has agreed to pay $54 million to settle claims from former customers of the failed crypto exchange. The settlement, announced on May 22, 2026, is one of the largest disclosed payouts by an external advisor in the FTX bankruptcy proceedings.
The deal is part of a broader $66 million settlement package that also includes FTX’s former auditor.
FTX customers accused Fenwick of playing a role in structuring fraudulent transactions and business entities that contributed to the exchange’s implosion. Fenwick denies any wrongdoing, maintaining its legal services were lawful and performed in good faith.
This settlement does not resolve all of Fenwick’s legal exposure. A separate federal lawsuit seeking at least $525 million remains pending against the firm and several of its current and former partners, alleging negligence and complicity in enabling the fraud.
FTX and its affiliate Alameda Research suffered a catastrophic liquidity crisis in November 2022. Customer deposits had been funneled into risky trades, real estate, political donations, and other spending. Founder Sam Bankman-Fried was convicted of fraud in 2023 and sentenced to 25 years in prison.
For FTX creditors, every settlement dollar recovered is progress toward making them partially whole. The Fenwick and auditor settlements add $66 million to that recovery pool.