The post FTX Users and Fenwick agree to settle lawsuit over crypto exchange fraud appeared on BitcoinEthereumNews.com.

In a major legal shift tied to the collapse of the cryptocurrency exchange FTX, users of the failed platform and Silicon Valley law firm Fenwick & West LLP have agreed to a proposed settlement in a long‑running lawsuit accusing the firm of helping to facilitate the massive fraud that led to the exchange’s downfall. Filed in federal court in Florida, the class‑action lawsuit alleges that Fenwick played a central role in advising FTX in structuring aspects of its business that later enabled the misuse of customer funds and helped avoid certain regulatory requirements. Plaintiffs said the firm’s “substantial assistance” was integral to the fraud that left millions of users unable to access their assets after FTX collapsed in late 2022. Although the terms of the settlement have not been publicly disclosed, both sides confirmed in a joint filing that they intend to submit the deal to the court for approval on February 27, 2026. Several individuals raised concerns about the FTX fraud Concerning the proposed settlement, sources with knowledge of the matter, who wished to remain anonymous due to its confidential nature, noted that the filing did not disclose specific details.  What was uncovered was that both sides jointly asked the court to freeze all deadlines and pending motions in the class-action lawsuit until the settlement is submitted. Meanwhile, it is worth noting that the lawsuit against Fenwick is part of a larger class-action suit submitted after the collapse of FTX in late 2022. Following this collapse, users have initiated legal proceedings against the exchange, famous figures have faced allegations of promoting it, and several firms have partnered with it. Initially filed in 2023 and updated in August, the lawsuit claims Fenwick was instrumental in facilitating FTX’s fraud by providing substantial support to its operations. This allegation prompted analysts to implement thorough investigations…

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Filed under: News - @ February 3, 2026 10:27 am