TechFlow News, May 24: According to The Block, Fenwick & West—the former primary outside law firm of FTX—has agreed to pay $54 million to settle claims alleging it aided and abetted Sam Bankman-Fried’s fraudulent conduct. Additionally, auditing firm Prager Metis has agreed to pay $11.75 million, and former Miami Heat player Udonis Haslem—formerly an FTX promoter—will pay $420,000. The three settlements total approximately $66 million.
This settlement marks the second round of resolutions in the FTX class-action litigation; related documents were filed Friday with the U.S. District Court for the Southern District of Florida in Miami. Fenwick denies any wrongdoing and states it was unaware of FTX’s fraudulent activities. Notably, the firm still faces a separate $525 million civil lawsuit in Washington, D.C., which is not covered by this settlement.
FTX collapsed in November 2022. Bankman-Fried was sentenced to 25 years in prison for stealing approximately $8 billion in customer funds and is currently appealing the conviction. Over $5 billion has already been returned to creditors from the FTX bankruptcy estate.
