FTX Fraud Settlements Reach $66 Million as Former Law Firm and Auditor Agree to Pay Customers

Former legal and financial partners of collapsed crypto exchange FTX have agreed to pay a combined $66 million to settle claims from customers who say they suffered losses linked to fraud at the company.

Fenwick & West Agrees to $54 Million FTX Settlement

Silicon Valley law firm Fenwick & West, which served as FTX US’s main outside legal adviser before the exchange collapsed in 2022, agreed to pay $54 million. Customers alleged the firm helped create legal structures and strategies that enabled fraud tied to former FTX chief executive Sam Bankman-Fried.

Fenwick denied wrongdoing, saying it had no knowledge of fraud at FTX and defended the integrity of its legal work. However, the firm still faces a separate $525 million lawsuit in Washington, D.C., involving claims of malpractice and negligence that are not covered by this settlement.

Auditor and Celebrity Promoter Also Reach Deals

Accounting firm Prager Metis agreed to pay $11.75 million, while former NBA player Udonis Haslem, who promoted FTX, will pay $420,000 as part of the latest settlement round.

FTX Customers Could Receive Additional Compensation

Lawyers representing customers are seeking approval for a single class covering millions of users who held crypto, fiat balances or purchased FTT tokens on FTX. To avoid double payments, settlement payouts would be reduced by any money customers already receive through the FTX bankruptcy process.

Former FTX founder Sam Bankman Fried is currently serving a 25-year prison sentence after being convicted of stealing billions in customer funds.