FTX Customers Move Towards $66M Settlements Amid Ongoing Legal Fallout

FTX customers are a step closer to recovering losses from the collapsed cryptocurrency exchange with new proposed settlements reaching nearly $66.17 million.

The agreements, which require court approval before becoming final, include Fenwick & West paying $54 million to resolve customer claims over its advisory work for FTX. The law firm has denied wrongdoing and maintains that its work was legitimate legal representation.

Prager Metis, the auditor who served FTX before its bankruptcy, has agreed to pay $11.75 million under a separate settlement. Former Miami Heat player Udonis Haslem, who promoted FTX, will also contribute $420,000 to the recovery fund.

The settlements do not address the role of Fenwick in potentially making it harder for customers to detect FTX's alleged fraud. However, they bring another recovery track to the legal fallout from Sam Bankman-Fried's fraud, which led to the exchange's collapse.