Fenwick and West agrees to settle lawsuit tied to FTX collapse

In a joint filing in federal court in Florida on 30 January 2026, Fenwick and lawyers for the plaintiffs said they plan to submit the settlement for court approval on 27 February 2026. The filing did not disclose financial terms and asked the court to pause deadlines and pending motions while the parties finalize the submission.

The case was filed in 2023 and is part of broader litigation brought after FTX failed in late 2022. The plaintiffs alleged Fenwick provided substantial assistance by creating and approving corporate structures that enabled the misuse of customer funds, and they argued the firm helped FTX shape its operations in ways that avoided certain money-transmitter registration requirements.

The complaint also alleged Fenwick had visibility into commingling of funds and blurred boundaries between FTX and trading firm Alameda Research. Fenwick has disputed the claims, arguing it is not liable for aiding and abetting misconduct it did not know about and that it provided routine legal services.

A judge allowed the amended complaint to proceed in November 2025 after denying Fenwick’s motion to dismiss. Fenwick & West and Moskowitz Law Firm, which represents FTX users, did not immediately respond to requests for comment.

As GNcrypto wrote on 23 January 2026, former Alameda Research chief executive Caroline Ellison was released from federal custody after serving about 14 months of a two year sentence, according to U.S. Bureau of Prisons records, after time in the Residential Reentry Management program. Ellison pleaded guilty in late 2022 and testified against FTX founder Sam Bankman-Fried, who is serving a 25 year sentence.