- Fenwick & West agreed to pay $54M to settle claims tied to FTX’s misuse of customer funds.
- Auditor Prager Metis and ex-NBA player Udonis Haslem settled additional FTX claims for $12.17M combined.
- FTX customers seek a unified claims process covering millions of users after the exchange’s 2022 collapse.
FTX’s legal fallout continues after former outside counsel Fenwick & West agreed to pay $54 million to settle customer claims tied to Sam Bankman-Fried’s fraud. Auditor Prager Metis also agreed to pay $11.75 million, while former NBA player Udonis Haslem settled for $420,000. The agreements were filed in federal court in Miami before U.S. District Judge K. Michael Moore.
Settlement Expands FTX Legal Fallout
According to Reuters, customer lawyers accused Fenwick & West of helping structure systems that enabled FTX’s misuse of customer funds. However, the Silicon Valley law firm denied wrongdoing and said it never knew about fraud inside FTX.
The latest agreements add three more defendants to earlier FTX class settlements approved between December 2024 and July 2025. Those earlier deals involved Sam Bankman-Fried, Caroline Ellison, Nishad Singh, Gary Wang, and former Fenwick partner Dan Friedberg.
The first settlement wave also included celebrity promoters such as Shaquille O’Neal, Kevin Paffrath, Graham Stephan, Erika Kullberg, Andrei Jikh, and Tom Nash. Meanwhile, customer lawyers Adam Moskowitz and David Boies requested certification for a single class covering millions of FTX users.
Customers Push For Unified Claims Process
The proposed class would include users who held crypto, fiat, yield products, or FTT tokens on FTX. Court filings stated FTX served more than 1.2 million users before its collapse in November 2022.
At the same time, plaintiffs asked the court to replace the FTX bankruptcy estate with JND Legal Administration. Lawyers argued the move could improve distribution efficiency and reduce costs for claimants.
The allocation proposal would subtract bankruptcy recoveries from customers’ total losses using CoinGecko pricing from May 14. However, FTT received through giveaways would carry zero value under the plan.
Fenwick Still Faces Separate Lawsuit
Although the Miami settlement resolves one class action, Fenwick still faces a separate $525 million lawsuit in Washington, D.C. That case involves allegations of malpractice, fraud, and gross negligence against the firm and several attorneys.
Meanwhile, a separate investor group from Hong Kong, Singapore, South Korea, the UK, and the EU challenged the settlement process. The group claims losses exceeding $500 million and requested protection for its independent lawsuit.
Bankman-Fried currently serves a 25-year prison sentence after his fraud conviction. However, he continues appealing the ruling while the FTX bankruptcy estate distributes recovered assets to creditors.