Fenwick & West and law firm Moskowitz have reached a proposed settlement with FTX users who sued the firm over its work for the collapsed crypto exchange. In a joint filing in a Florida federal court, the parties said they will ask the court to consider the settlement on Feb. 27.
The filing did not disclose the settlement terms. Both sides asked the court to pause deadlines and pending motions in the multidistrict class-action ahead of the approval filing.
The claim against Fenwick is part of a broader class-action litigation that followed FTX’s 2022 collapse. The suit, originally filed in 2023 and amended in August, alleged Fenwick played “a key and crucial role” in enabling the fraud, accusing the firm of providing “substantial assistance” by creating and approving structures that allegedly allowed fraudulent activity, advising on ways to avoid money-transmitter registrations, and having visibility into commingled funds and the blurred lines between FTX and Alameda Research.
Fenwick moved to dismiss the complaint, arguing it could not be liable for aiding a fraud it did not know about and that it provided routine, lawful legal services. In November, the court denied Fenwick’s motion, allowing the amended complaint to proceed.
Fenwick & West and the Moskowitz Law Firm did not immediately respond to requests for comment.
Separately, FTX users sued Sullivan & Cromwell in February 2024 alleging a role in the multibillion-dollar fraud; that complaint was voluntarily dismissed eight months later for lack of evidence.
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