FTX MDL (Promoters & Enablers): ~$11B losses Mass Tort

The consolidated multidistrict litigation through which defrauded FTX customers are pursuing the exchange’s professional and celebrity enablers, law firm Fenwick & West, auditor Prager Metis, venture backers and A-list promoters, to recover roughly $11B in customer losses.

LATEST DEVELOPMENT · MAY 22, 2026

In late May 2026, FTX’s former law firm Fenwick & West agreed to pay $54M and auditor Prager Metis $11.75M to settle customer fraud claims, a roughly $66M second wave of settlements now awaiting preliminary approval from Judge K. Michael Moore.

PREDICTED OUTCOME

AI-GENERATED · METHODOLOGY →

Settlement ~82% likely HORIZON: rolling settlements through 2028 CONFIDENCE: HIGH

The most likely path, at roughly 80 percent, is that MDL 3076 winds down through successive negotiated settlements rather than any merits judgment, with the Fenwick and Prager Metis deals approved by late 2026 and the remaining promoter, bank and venture-capital tracks resolving in stages through 2028. The pattern is already set: insider deals were approved in 2024 and 2025, a second wave of about $66 million landed in May 2026, and Judge Moore’s May 2025 order stripped the promoter claims down to Florida and Oklahoma unregistered-securities theories, which is a narrow but expensive-to-defend exposure that pushes celebrities and sponsors toward modest cash exits. Expect total class recoveries in the $250 million to $700 million range, a small fraction of the $11 billion headline, with individual promoter payments clustering in the low seven figures and only MLB, Mercedes-AMG and the largest VC backers plausibly paying eight figures. The single strongest driver is that the deep-pocketed defendants face capped, insurable claims after the pleading rulings while plaintiffs’ co-lead counsel need cash to fund a sprawling multi-track case, so both sides value certainty over a jury in Miami. Substantial partial recovery from the FTX estate itself also erodes the classes’ damages narrative and depresses settlement values. The leading alternative, at about 12 percent, is that the surviving state unregistered-securities claims fail at summary judgment or class certification against the remaining promoters and VC defendants, leaving a materially split result where only the professional defendants pay. A contested trial verdict for the classes on any track is under 5 percent.

Two settlement waves already approved or pending, pattern entrenched · Most promoter claims dismissed May 2025, exposure narrowed and capped · Estate clawbacks and customer repayments shrink class damages · Insurable defendants prefer cheap certainty over Miami jury · Plaintiff firms need funding across many defendant tracks

Generated by claude-opus-5 on Aug 4, 2026, from this case’s record only. It stands until a major development changes the record. Not legal or investment advice. How predictions are made →

BACKGROUND

After FTX collapsed in November 2022, customers filed a wave of class actions that the Judicial Panel on Multidistrict Litigation centralized in the Southern District of Florida as MDL 3076 before Judge K. Michael Moore. Because the exchange’s estate is pursuing its own clawbacks, this MDL targets the third parties who allegedly enabled Sam Bankman-Fried’s fraud, and Judge Moore has organized it into separate tracks for insiders, promoters, lawyers, accountants, banks and venture-capital investors. A 582-page amended complaint filed in May 2025 seeks to hold promoters, including Tom Brady, Gisele Bündchen, Larry David, Stephen Curry, Major League Baseball and the Mercedes-AMG Formula 1 team, jointly liable for customer losses estimated at about $11B.

The litigation has produced a first wave of settlements: deals resolving claims against insiders and certain defendants were preliminarily approved between December 2024 and July 2025. In May 2025, the court narrowed the promoter claims, dismissing most counts against celebrity endorsers but allowing Florida and Oklahoma unregistered-securities claims to proceed. In May 2026, a second wave arrived, with FTX’s former outside counsel Fenwick & West agreeing to pay $54M and auditor Prager Metis $11.75M (plus $420,000 from promoter Udonis Haslem), roughly $66M combined, subject to Judge Moore’s approval.

TIMELINE

MAY 22, 2026SETTLEMENT

Second-wave settlement filing also includes $420,000 payment from former NBA player Udonis Haslem

The same motion seeking preliminary approval of the Fenwick & West ($54M) and Prager Metis (~$11.75M) settlements also disclosed that former NBA player Udonis Haslem agreed to pay $420,000 to settle customer fraud claims tied to his FTX promotional activities.

Fenwick & West to Pay $54 Million in FTX Collapse Settlement (2)
MAY 22, 2026SETTLEMENT

Fenwick ($54M) and Prager Metis ($11.75M) settlements filed for approval

FTX’s former outside counsel and auditor agreed to pay about $66M combined to settle customer claims, subject to Judge Moore’s approval.

FTX’s former law firm, auditor agree to pay $66 million to settle customer claims over fraud
MAY 29, 2025FILING

582-page promoter complaint filed

Plaintiffs filed a sprawling amended complaint targeting MLB, the Mercedes-AMG F1 team, Tom Brady, Gisele Bündchen, Larry David, Stephen Curry and other promoters as alleged enablers.

FTX Promoter & Influencers Class Action
MAY 8, 2025JUDGMENT

Court narrows claims against celebrity endorsers

Judge Moore dismissed most claims against high-profile promoters such as Tom Brady and Stephen Curry but allowed Florida and Oklahoma unregistered-securities claims to proceed.

FTX Promoter & Influencers Class Action
JUN 5, 2023PROCEDURAL

Cases centralized as MDL 3076 before Judge Moore

The JPML consolidated the FTX customer suits in the Southern District of Florida, where Judge K. Michael Moore organized them into litigation tracks against insiders, promoters, lawyers, accountants and investors.

FTX Promoter & Influencers Class Action
NOV 2022FILING

FTX collapses. Customers file class actions

FTX’s implosion in November 2022 triggered a wave of customer class actions later centralized as MDL 3076.