FTX Users Settle with Fenwick & West in Landmark Legal Resolution

In a significant development following the catastrophic collapse of FTX in late 2022, a class of affected users has reached a confidential settlement with the law firm Fenwick & West. The settlement resolves allegations that the firm played a key advisory role in structuring FTX's operations, which plaintiffs claimed facilitated the misuse of customer funds and helped the exchange skirt regulatory oversight. This legal milestone, while keeping its specific terms under wraps, marks a crucial step in the ongoing effort to assign accountability and provide some measure of recourse for the millions left unable to access their assets after one of the largest failures in cryptocurrency history. The lawsuit, filed in Florida federal court, centered on the claim that Fenwick & West provided "substantial assistance" to FTX, going beyond traditional legal counsel to actively enable the business models and corporate structures that ultimately led to massive fraud. This case highlights the evolving legal landscape where third-party service providers, including law firms, are increasingly scrutinized for their role in crypto enterprise failures. For the cryptocurrency industry, this settlement underscores a hardening regulatory and legal environment where all enablers of crypto platforms are being held to higher standards of diligence and accountability. From a market perspective, resolutions like this are ultimately bullish for the long-term health of the digital asset ecosystem. While the FTX collapse was a severe shock that eroded trust, the subsequent rigorous pursuit of justice across all responsible parties—from founders to advisors—demonstrates the market's maturation. It signals that the era of impunity is closing, which is foundational for building the robust, transparent, and trustworthy infrastructure necessary for mainstream institutional adoption. As the industry continues to consolidate and rebuild post-2022, such legal accountability acts as a necessary purge, clearing the way for more compliant and sustainably built projects to thrive. The path forward is built on restored integrity, and every settled claim is a brick in that foundation.

FTX Users Reach Settlement with Fenwick Over Exchange Fraud Claims

FTX users have reached a settlement with law firm Fenwick & West in a class-action lawsuit filed in Florida federal court. The suit alleges Fenwick provided "substantial assistance" in structuring FTX's business operations, enabling customer fund misuse and regulatory avoidance. The collapse of FTX in late 2022 left millions unable to access their assets.

While settlement terms remain confidential, both parties confirmed plans to submit the deal for court approval by February 2026. The agreement pauses all deadlines and motions in the ongoing litigation. This case forms part of broader legal actions stemming from FTX's downfall, including suits against promoters and partners of the failed exchange.

Chiliz Allocates 10% of US Fan Token Proceeds to $CHZ Buyback and Burn

Chiliz has earmarked 10% of revenue from its US Fan Token offerings for a strategic buyback and burn of its native $CHZ token. The move, announced via the platform's official X account, aims to systematically reduce circulating supply—potentially bolstering the token's value while aligning ecosystem expansion with holder interests.

The initiative coincides with Chiliz's planned reintroduction of Fan Tokens to the US market in 2026, as detailed in CEO Alexandre Dreyfus' Chiliz Vision 2030 manifesto presented on February 3. The company is pivoting toward SportFi—a fusion of sports and decentralized finance—positioning blockchain as the key to unlocking the $1 trillion global sports economy through tokenized, yield-generating assets.

Chiliz had initially pursued US market penetration prior to FTX's collapse, which disrupted those plans. The revived strategy now focuses on building financial infrastructure for sports franchises, leveraging Web3 tools to transform fan engagement into tradable financial instruments.