FTX's former law firm and auditing firm agree to pay $66 million to settle fraud allegations

According to The Block, FTX's former major external law firm Fenwick & West has agreed to pay $54 million to settle claims related to its alleged assistance in facilitating Sam Bankman-Fried's fraudulent activities. In addition, the auditing firm Prager Metis has agreed to pay $11.75 million, and former Miami Heat player Udonis Haslem, as a former promoter of FTX, will pay $420,000, bringing the total to approximately $66 million.

The above settlement marks the second round of resolutions in the FTX class action lawsuit, with relevant documents submitted to the Miami federal court on Friday. Fenwick denies any wrongdoing and states that it was unaware of FTX's fraudulent activities. Notably, the firm still faces another civil lawsuit for $525 million in Washington, D.C., which is not covered by this settlement.

FTX collapsed in November 2022, and Bankman-Fried was sentenced to 25 years in prison for stealing approximately $8 billion in customer funds and is currently appealing. FTX's bankruptcy estate has returned over $5 billion to creditors.