The US Commodity Futures Trading Commission’s (CFTC) market and clearing divisions issued no-action relief for fully collateralized event contracts, easing certain swap data reporting and recordkeeping obligations for prediction market operators and clearing organizations.

The divisions said Wednesday that they will not recommend enforcement against designated contract markets (DCMs), derivatives clearing organizations (DCOs), or their participants for failing to comply with specified swap-related recordkeeping requirements or for failing to report covered transactions to swap data repositories.

Event contracts on prediction markets technically qualify as “swaps” as they are based on binary events. However, the letter argued that similar contracts are listed for trade by DCMs and have more similar characteristics to futures and options on futures, hence enabling firms to report certain events contracts directly to the CFTC.

The letter listed 19 platforms, including Polymaket, Kalshi and Gemini Titan. It added that companies seeking to list similar contracts may request a no-action letter from the CFTC.

The CFTC said the no-action letter comes in response to numerous requests from DCMs and DCOs that list and clear event contracts and said it anticipates more similar requests.

The move could reduce compliance complexity for CFTC-regulated prediction market venues, including Kalshi and Polymarket US as the agency continues to defend its jurisdiction against state gambling regulators.

The no-action letter comes as prediction markets sit at the center of a widening federal-state fight over whether sports and other event contracts should be regulated as derivatives by the CFTC or as gambling products by state authorities. The agency filed an amicus brief in the Sixth Circuit Court of Appeals on Tuesday, arguing that Ohio’s actions intrude on federally regulated markets after it ordered Kalshi to halt sports event contracts in the state last year.

Kalshi sued Ohio lawmakers in October 2025, requesting that the federal court stop the Ohio Casino Control Commission and state attorney general from taking action, but the motion was denied in court in March, leading Kalshi to appeal the decision. 

CFTC no-action letter on prediction markets. Source: CFTC.gov

CFTC pushes for exclusive jurisdiction over prediction markets

The CFTC has multiple ongoing disputes with state lawmakers over prediction market jurisdiction. It sued five states in a bid to cement its authority over prediction markets, including lawmakers in Wisconsin, New York, Arizona, Connecticut and Illinois. 

Earlier in May, the CFTC said it received over 1,500 responses on a rule it proposed in March that would allow it to amend or issue new regulations for event contracts on prediction markets. 

The responses were mixed, with some state regulators calling for a stricter crackdown on prediction markets, while others, such as venture capital firm a16z, sided with the CFTC, arguing that state crackdowns on these platforms conflict with federal law and damage market access for ordinary users.

Related: Kalshi, Polymarket face trading halt in Nevada after court rulings 

On March 12, the CFTC issued a staff advisory classifying event contracts on prediction markets as a “financial asset class,” Cointelegraph reported. 

Earlier in February, CFTC Chair Michael Selig publicly reiterated claims that the CFTC had “exclusive jurisdiction” over prediction markets. 

Magazine: Inside a 30,000 phone bot farm stealing crypto airdrops from real users 

TLDR:

• Kraken migrates kBTC and all future wrapped assets to Chainlink CCIP, citing enterprise-grade security.
• The $292M Kelp DAO exploit, tied to North Korea’s Lazarus Group, triggered a broad LayerZero exit across DeFi.
• Solv Protocol, Kelp DAO, and Re also left LayerZero for Chainlink CCIP following critical cross-chain security reviews.
• Kraken’s kBTC holds a $266M market cap; holders require no action as the backend migration proceeds.

Kraken has announced it will migrate its wrapped Bitcoin product, kBTC, from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

The move follows the $292 million Kelp DAO exploit in April, which was later linked to North Korea’s Lazarus Group. Kraken cited enterprise-grade security and strict risk management as the driving reasons.

The token holds a market cap of approximately $266 million, and future wrapped assets will also use Chainlink.

Kraken Moves Away From LayerZero Infrastructure

Kraken announced the deprecation of its LayerZero-based cross-chain provider this week. The crypto exchange will now use Chainlink CCIP as its exclusive cross-chain infrastructure.

The decision covers kBTC and all future Kraken Wrapped Assets. Holders of kBTC do not need to take any action at this time.

Kraken explained its reasons on X, formerly Twitter, in a public post. The exchange stated that Chainlink CCIP offers ISO 27001 and SOC 2 Type 2 certifications.

It also noted the protocol’s secure-by-default architecture and 16 independent nodes. Native rate limits were also listed among the key security features.

The exchange wrote: “Kraken is deprecating its existing cross-chain provider and migrating to Chainlink CCIP as its exclusive cross-chain infra.”

The post also referenced enterprise-grade infrastructure as a priority. Kraken confirmed that more details on the migration process will follow on official channels.

Kraken also noted a broader goal behind the migration. The exchange said both firms can help accelerate the global adoption of crypto.

By using CCIP, Kraken aims to unlock utility and distribution for its wrapped assets across DeFi. No specific timeline for the full migration was given.

LayerZero Fallout Spreads Across the Industry

Kraken joins a growing list of firms exiting LayerZero’s technology following the Kelp DAO incident. On April 18, attackers drained 116,500 rsETH liquid staking tokens from Kelp DAO’s infrastructure.

LayerZero later admitted it made a mistake in setting up Kelp DAO’s configuration. The Lazarus Group, a North Korean state-sponsored hacker group, was attributed to the exploit.

Kelp DAO was the first to announce it would move to Chainlink CCIP after the incident. Solv Protocol followed, saying it would migrate infrastructure backing over $700 million in Bitcoin-related assets.

On-chain reinsurance protocol Re also announced plans to leave LayerZero last week. Each departure has added to the scrutiny around cross-chain bridge security.

The Kelp DAO postmortem revealed that attackers poisoned internal RPCs used by LayerZero Labs. This allowed them to drain tokens without triggering standard security alerts.

The vulnerability was specific to how Kelp DAO’s setup was configured, according to LayerZero. However, the event prompted a wider review of cross-chain security practices across the industry.

Chainlink CCIP has emerged as the preferred alternative for firms reassessing their interoperability stack. Multiple protocols have now committed to the technology within weeks of the exploit.

The migration trend shows how a single security event can quickly shift infrastructure preferences in crypto. For Kraken, the move is part of a longer-term strategy to secure all its wrapped asset offerings.

A new analysis from S&P Global Market Intelligence finds that stablecoins are increasingly positioned as an alternative settlement rail for the $100 trillion global business-to-business payments market. The report argues that the digital tokens could reduce settlement times, lower fees and add transparency for cross-border supplier payments, payroll and intercompany treasury operations, though broader adoption will hinge on regulatory clarity and banking partnerships.

Why stablecoins are drawing enterprise interest

Corporates and payment processors face persistent frictions in B2B flows: long settlement windows, opaque fees, multiple intermediaries and foreign exchange volatility. According to S&P Global Market Intelligence, these pain points make cross-border supplier payments, contractor payroll and intercompany transfers natural targets for tokenised settlement rails. The report estimates that global B2B payments exceed $100 trillion annually and notes that the current stock of circulating stablecoins stood at roughly $269 billion, with a projection to reach about $434 billion by 2028, reflecting growth in issuance and on‑ramp infrastructure.

Speed and cost are the principal advantages cited. On‑chain transfers can settle near instantaneously compared with multi-day correspondent banking flows. Embedded dossiering and ledger-based records also promise clearer audit trails for reconciliation. For treasurers, the ability to move liquidity quickly between legal entities and currencies could materially change working capital models.

Primary use cases identified

S&P Global Market Intelligence highlights three B2B scenarios where stablecoins are gaining traction:

Cross-border supplier payments. This is identified as the leading short-term use case. Providers are combining traditional bank accounts with digital wallets to route payments over stablecoin rails, aiming to cut intermediary fees and reduce FX exposure. The analysis cites firms such as Sokin, dLocal, Convera (in partnership with Ripple) and OpenFX as examples of platforms embedding stablecoin rails into existing payment workflows.

Payroll and contractor disbursements. For firms managing global payroll and gig-worker payouts, stablecoins can enable 24/7 disbursements, faster access to funds and the option for recipients to hold or convert tokens locally. The report notes integrations and pilots involving payroll firms and card networks, including Rise, Bitwage, Remote, Visa, Mastercard, Episode Six, Stripe and Worldpay.

Intercompany settlement and treasury automation. Large enterprises with numerous subsidiaries can use tokenised transfers to streamline internal funding, reconciliation and liquidity sweeps. S&P’s analysis points to examples where treasury teams leverage stablecoins and private/on‑permissioned tokens for automated transfers, citing vendor partnerships such as Trovata with Paxos (USDP). The report also references corporate use cases reported in the market, including the use of JPM Coin for internal liquidity movements and instances where companies have experimented with stablecoins for FX hedging.

Infrastructure and industry partnerships

Adoption depends on a layered ecosystem of wallets, custody, compliance tooling and payment orchestration. The report describes how payment providers are either building in‑house stacks or partnering with infrastructure specialists to simplify enterprise integration. Names mentioned include Bridge (associated with Stripe), BVNK, Fireblocks and Zero Hash—firms that supply custody, tokenisation infrastructure and settlement plumbing.

Major payment networks and processors are also participating, seeking to bridge card rails and bank accounts with tokenised flows. That participation can accelerate on‑ramps for corporate customers but also raises questions about interoperability between permissioned bank tokens, public stablecoins and existing correspondent banking networks.

Regulatory and operational hurdles

While the technology addresses clear operational frictions, S&P Global Market Intelligence emphasises that regulatory clarity remains a decisive factor. Compliance requirements around anti‑money laundering, sanctions screening, custodial arrangements and issuer reserve disclosure will influence which stablecoin models are acceptable to banks and corporates. Counterparty risk and issuer stability also remain material concerns: corporates must assess credit and operational exposures when choosing tokenised rails.

Integration complexity is another practical barrier. Enterprises often require reconciliation with ERP systems, legal alignment across jurisdictions and predictable FX conversion paths. Building or sourcing orchestration layers that coordinate on‑chain settlement with off‑chain banking is therefore a critical implementation step.

Market implications and what to watch

If the dynamics S&P Global Market Intelligence outlines play out, stablecoins could reshape treasury operations and cross-border cash management over the coming years. Cost reductions and faster settlement would benefit multinational firms and payment platforms, while new entrants could capture value by offering integrated wallets, conversion services and compliance tooling.

Key indicators to monitor include regulatory guidance in major jurisdictions, issuance growth among regulated stablecoin providers, and the pace at which incumbent banks and payment networks embed tokenised rails into corporate products. The projected increase in circulating stablecoins to roughly $434 billion by 2028, as reported by S&P, suggests providers and infrastructure partners expect significant growth—but that expansion will depend on demonstrable compliance, interoperability and client demand.

Any data or examples cited in this article are attributed to S&P Global Market Intelligence.

Dartmouth College’s $9 billion endowment has quietly expanded its exposure to digital assets, reporting new crypto-related holdings in a recent SEC filing. In a Form 13F covering the quarter ended March 31, 2026, the trustees disclosed positions across three cryptocurrency-focused exchange-traded funds (ETFs): about $3.3 million in the Bitwise Solana Staking ETF, roughly $3.5 million in the Grayscale Ethereum Staking ETF, and approximately $7.7 million in BlackRock’s iShares Bitcoin ETF.

The figures mark a shift from January, when the endowment’s crypto footprint was skewed toward larger holdings in BlackRock’s Bitcoin ETF (over $10 million) and the Grayscale Ethereum Mini Trust (about $5 million). The newer disclosures show a more diversified but still modest stake in regulated crypto vehicles within Dartmouth’s multi-billion-dollar investment program.

These details come as U.S. universities increasingly experiment with regulated access to digital assets. Dartmouth’s move follows Harvard’s reported crypto exposure, with its own endowment reported to hold BlackRock’s iShares Bitcoin Trust and Ethereum Trust, as part of a broader institutional push into crypto—an evolution previously documented in coverage of Harvard’s 2025 and 2026 positioning.

Source data and implications are anchored in the SEC filing and related coverage, illustrating a growing appetite among large, fiduciary portfolios to access crypto through permitted, exchange-traded vehicles rather than direct holdings. For context, the SEC began approving spot Bitcoin ETFs in January 2024 and has since extended approvals to other crypto-asset baskets, including Ether, Solana, Dogecoin, and XRP-related products, with additional applications under review.

Key takeaways

• Dartmouth’s endowment now holds approximately $3.3 million in the Bitwise Solana Staking ETF, $3.5 million in the Grayscale Ethereum Staking ETF, and $7.7 million in BlackRock’s iShares Bitcoin ETF, according to the SEC filing for the quarter ended March 31, 2026.
• January 2026 holdings showed a larger allocation to BlackRock’s Bitcoin ETF (over $10 million) and roughly $5 million in the Grayscale Ethereum Mini Trust, indicating a shift toward a broader, stake-based crypto approach rather than concentrated bets.
• Harvard’s endowment has been cited as holding positions in BlackRock’s Bitcoin Trust and Ethereum Trust, underscoring a broader trend of top-tier university funds pursuing regulated crypto access.
• The regulatory backdrop supports this trend, with the SEC having approved spot Bitcoin ETFs in 2024 and gradually expanding to other crypto-linked ETFs, even as ongoing market flows remain volatile.
• Bitcoin-related ETF activity has shown notable daily outflows in recent weeks, with a report noting $635.2 million in daily outflows—the largest such move since January—contextualizing the risk environment behind these allocations.

Dartmouth’s crypto exposure deepens as endowment reallocates to staking ETFs

The latest 13F filing shows Dartmouth anchoring a modest yet meaningful exposure to staking-focused crypto ETFs. The Bitwise Solana Staking ETF offers exposure to Solana via a staking strategy, while the Grayscale Ethereum Staking ETF provides exposure to Ethereum staking mechanics. BlackRock’s iShares Bitcoin ETF remains the largest single crypto position among the three, highlighting a preference for regulated, exchange-traded vehicles that provide liquidity and governance familiar to an endowment investor.

Compared with January, the endowment’s crypto lineup has become more diversified but with smaller single-name bets than before. This pattern may reflect a cautious approach that weighs liquidity, transparent pricing, and fiduciary oversight—factors increasingly prioritized by large public and private endowments when allocating to digital assets.

Universities and crypto: a signal of deeper institutional interest

Dartmouth’s disclosure sits within a broader arc of institutional adoption. Harvard’s reported positions in BlackRock’s Bitcoin and Ethereum Trusts were highlighted in coverage surrounding its substantial $57 billion endowment in 2025. The move signals that major universities are testing the viability of regulated crypto access as a complement to traditional asset classes, a shift that could influence the broader risk preferences and governance standards across the higher-ed investment community.

Investors watching these developments may interpret them as a growing endorsement of listed crypto access vehicles as a way to gain regulated, price-tick exposure to digital assets without holding tokens directly. The trend also aligns with an industry effort to broaden participation from large pools of capital, including endowments, foundations, and pension funds, into more mature and compliant crypto investment formats.

Regulatory backdrop and market context

Since the SEC started approving spot ETFs tied to Bitcoin in January 2024, the landscape has slowly broadened to include products linked to Ether, Solana, Dogecoin, and XRP, with more applications under review. The ongoing evolution of ETF availability is relevant for institutions weighing crypto allocations because it offers regulated, transparent access routes that fit traditional fiduciary frameworks.

In the market backdrop, recent ETF actions have been accompanied by notable capital moves. Bitcoin funds recorded about $635.2 million in daily outflows—the largest one-day pullback since January—following earlier outflows of more than $800 million on a previous date, driven in part by sector-wide momentum shifts and price dynamics. At the time of this report, Bitcoin traded around $81,237, up roughly 2% over the prior 24 hours, brushing the 200-day exponential moving average, a key technical support. Still, BTC remains below the 365-day EMA and far from the 2025 all-time high near $126,000 reached in October.

These market conditions underscore the complexity facing institutional allocators: while price action and volatility persist, regulated ETF structures can provide a framework for cautious, long-horizon exposure to digital assets as investor demand grows and regulatory clarity deepens.

Looking ahead, readers should watch how more university endowments calibrate their crypto programs as regulators refine product approvals and as institutions balance risk with potential yield. The coming quarters will reveal whether the Dartmouth-size experiment becomes a broader blueprint for scaled, governance-forward crypto access within legacy-investment portfolios.

Crypto market analysts say increasing altcoin performance and volumes on Binance, a rising altseason index and a strengthening TOTAL2 macro structure are early signs that the market could enter an altseason in 2026.

Key takeaways:

• Altcoin recovery signals emerge, hinting at a potential altseason in 2026.
• Rising altcoin trading volume on centralized exchanges and AltSeason Index point to possible capital rotation from Bitcoin.
• Altcoin market cap chart shows improving technicals.

Altcoin market shows early signs of recovery

Crypto analyst Darkfost said that macroeconomic uncertainties surrounding the ongoing US and Israel-Iran war saw the altcoin sector correct by more than 50%.

However, the sector appears to be quietly “awakening” as the percentage of altcoins on Binance trading above their 200-day moving average (MA) increased to 21%, levels last seen in September 2025, suggesting that “investor interest in altcoins appears to be gradually returning,” Darkfost said in a Quicktake note on Wednesday, adding:

“This represents a crucial indicator for those looking to gain exposure.”

Performance of altcoins on Binance. Source: CryptoQuant

Darkfost cautioned that it’s still too early to call for an altseason as the metric remains below the levels seen in mid-2025 and Q4 2024, when most altcoins traded between 60-80% above their 200-day MA. 

Meanwhile, fellow analyst CryptoOnchain pointed to rising activity on centralized exchanges (CEX) as another sign of increasing momentum in altcoins. 

According to the analyst, altcoin trading volume, excluding the five largest cryptocurrencies, has increased steadily over the past few weeks. The chart below shows the appearance of an Altcoin Volume Increasing Trend (yellow bars), which occurred when the 30-day MA for altcoin trading volume crossed above its 365-day MA.

Historically, when this metric flashes yellow, “it signals a clear rotation of capital from major caps into mid and low-cap altcoins,” the analyst said, adding:

“If this momentum is sustained, it could serve as a strong confirmation that a broader altcoin rally is underway.” 

CEX volume ratio vs. Top 5 crypto. Source: CryptoQuant

Altcoin  season “approaching”

The 90-day AltSeason Index also climbed to 28.6, its highest level in months. The index tracks whether a majority of altcoins outperform Bitcoin over the last 90 days. 

“The altseason is starting quietly,” CryptoQuant analyst CW8900 said in a recent Quicktake note, referring to the “rapid rise” in the index over the last few weeks, adding:

“The real AltSeason is approaching.”

Altcoin season index. Source: CryptoQuant

Although the index has been recovering, its value of 28.6 means only 28.6% of the top 50 cryptocurrencies by market capitalization have outperformed Bitcoin over the last 90 days. This falls short of the 75% “altseason” threshold, according to Blockchaincenter.

These include ZCash (ZEC), Bittensor (TAO) and Morphor (MORPHOR), which are up 98%, 72% and 68% over the last three months, compared to Bitcoin’s (BTC) 17% gains. 

Top 50 Performance over the 90 days. Source: Blockchaincenter

CW8900 added:

“The indicator also shows that there was no real AltSeason in this cycle. The period when the AltSeason Index reached its highest point was early 2024, and even that value was relatively low compared to previous AltSeasons.”

Altcoins show signs of bottoming out

Data from TradingView showed TOTAL2 — the cumulative market capitalization of all cryptocurrencies except Bitcoin — bouncing off the lower trend line of a multi-year broadening wedge that has defined its price action since mid-2022. 

In a Wednesday post on X, analyst cryptocupra said TOTAL2’s breakout could mirror the 2021 breakout and rise as high as $8 trillion, adding that “altseason is inevitable.”

Altcoins market cap, TOTAL3. Source: X/1000xgirl

Nebraskangooner’s chart showed TOTAL2 breaking above the upper boundary of an ascending triangle on the daily time frame.

TOTAL2 is “breaking out from this bottoming pattern, the analyst said in a recent X post, adding:

“Altcoin market primed for more upside as long as this breakout holds.”

TOTAL2 daily chart. Source: X/Nebraskangooner

Fellow crypto analyst GorkemCrypto also shared a bullish argument with a 2021 fractal that projects Bitcoin dominance falling to 40% as capital rotates into altcoins.

Bitcoin dominance. Source: X/GorkemCrypto

However, as Cointelegraph reported, the Bitcoin Dominance Index has climbed to its highest level since November 2025. BTC dominance has been climbing since 2023, suggesting that the current trend still favors BTC over altcoins.

JPMorgan Chase increased its reported holdings in several Bitcoin exchange-traded funds (ETFs) in the first quarter, led by a 174% jump in its position in BlackRock’s iShares Bitcoin Trust (IBIT), according to a 13F filing published Wednesday.

The bank increased its position in IBIT from around 3 million shares in Q4 2025 to 8.3 million shares, according to the filing.

The increase added about $162 million in reported value, based on filing data, despite Bitcoin price falling by more than 22% in Q1, according to CoinGlass data.

The filing also showed broader activity across crypto-linked assets, including new and expanded positions in funds tied to Ethereum and Solana, alongside rotation in equities tied to miners and companies with digital asset exposure.

The filing points to selective growth in JPMorgan’s reportable crypto-linked holdings during a weak quarter for digital assets, when Bitcoin prices fell and US spot Bitcoin ETFs recorded net outflows.

Bitcoin ETF bets expand sharply beyond BlackRock position

Beyond its increased stake in BlackRock’s iShares Bitcoin Trust, JPMorgan also expanded exposure across several other spot Bitcoin ETFs, including the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Bitwise Bitcoin ETF (BITB).

Holdings in BITB surged nearly 900%, rising from 4,872 shares to 48,258 shares, adding roughly $1.51 million in reported value. The bank’s FBTC position increased about 450%, from 3,996 shares to 22,196 shares, worth about $980,000 in added value.

Related: Jane Street slashes Bitcoin ETF holdings, adds Ether funds in Q1 2026

Additionally, JPMorgan significantly increased exposure to the ProShares Bitcoin Strategy ETF (BITO), which tracks Bitcoin futures rather than holding spot BTC directly. The bank’s BITO holdings surged from just 40 shares to 1,302 shares, a gain of more than 3,000%.

Mixed altcoin ETF activity across Ethereum, Solana and XRP

JPMorgan also showed uneven activity across altcoin-linked ETFs in the first quarter, with new positions added in some funds while others were fully exited.

The bank initiated a position in the Bitwise Solana Staking ETF (BSOL), buying 47,460 shares worth about $523,000, marking its first reported exposure to a Solana-focused ETF product.

Source: The Bitcoin Historian

At the same time, JPMorgan increased its exposure to Ethereum-linked ETFs, including a 36% rise in the iShares Ethereum Trust (ETHA) to 266,734 shares, alongside a sharp increase in the Bitwise Ethereum ETF (ETHW).

Related: Wells Fargo boosts Ether ETF exposure in Q1 2026, rotates BTC holdings

On the other hand, the filing showed a full exit from XRP-linked exposure, with the bank reducing its Bitwise XRP ETF (XRP) position from 3,870 shares to zero.

In line with the bullish BTC ETF buying, JPMorgan also slightly increased its position in Strategy, the world’s largest public Bitcoin holder.

The bank’s crypto-linked equity positions were otherwise mixed, with reductions in Robinhood Markets as well as Coinbase, Galaxy Digital and Bitdeer Technologies Group. At the same time, JPMorgan added to positions in Block, MARA Holdings, Core Scientific and PayPal.

Magazine: Strategy reveals why they would sell BTC, Trump Media posts loss: Hodler’s Digest, May 3 – 9

A group of 20 victims from five countries or jurisdictions has filed a $525 million lawsuit against Fenwick & West LLP, one of Silicon Valley’s top tech law firms, accusing it of helping conceal the FTX fraud.

The complaint, filed Wednesday in the US District Court for the District of Columbia, names the firm alongside six individual defendants. The plaintiffs say they lost their life savings when FTX collapsed, claiming that Fenwick’s involvement gave the exchange a false air of legitimacy that kept them from pulling their money out.

At the center of the case is testimony from Nishad Singh, FTX’s former director of engineering, who pleaded guilty to fraud charges and testified at Sam Bankman-Fried’s criminal trial. Singh said he personally told Fenwick attorneys that customer funds were being misused, and instead of walking away, the firm advised on how to hide it.

The complaint goes further. It says Fenwick attorneys set up North Dimension Inc., a Delaware shell company that posed as an electronics retailer but funneled over $3 billion in stolen customer funds. The firm also allegedly implemented FTX’s Signal auto-delete messaging policy, the same system federal prosecutors said helped the fraud go undetected by regulators and investigators.

Related: FTX estate misses out on $3B Cursor stake value after $200K sale in 2023

Examiner found Fenwick “intertwined” in FTX’s wrongdoing

A court-appointed bankruptcy examiner, whose report came out in 2024 after reviewing more than 200,000 documents, found that Fenwick created the corporate structures for both FTX and Alameda Research, formed shell entities to obscure money movements, and drafted backdated agreements to cover illicit transfers, the complaint states. The examiner concluded the firm was “deeply intertwined in nearly every aspect of FTX Group’s wrongdoing,” the lawsuit reads.

“These findings are those of a court-appointed officer based on documentary evidence in federal bankruptcy proceedings to which Fenwick was a party,” the lawsuit added.

FTX victims file lawsuit against Fenwick. Source: CourtListener

After FTX filed for bankruptcy in November 2022, Fenwick scrubbed all mentions of the exchange from its website. The firm also quietly hired top-tier law firm defense lawyers at Gibson Dunn before any civil lawsuit was filed against it, per the lawsuit.

The plaintiffs are bringing seven claims against Fenwick, including malpractice, fraud and gross negligence. They are seeking compensatory damages exceeding $525 million, return of all legal fees Fenwick earned from FTX and punitive damages against partners Tyler Newby and Daniel Friedberg for “deliberate and reckless individual professional conduct.”

Related: Sam Bankman-Fried withdraws motion for a new trial, still asks for new judge

Judge denies SBF’s bid for new trial

Last month, a federal judge denied Bankman-Fried’s bid for a new trial, calling his claims of new evidence baseless. Judge Lewis Kaplan, who sentenced the former FTX CEO to 25 years in prison in 2024, said Bankman-Fried’s argument that three former FTX executives could counter the government’s case was without merit, noting that he knew all three witnesses well before the trial.

Bankman-Fried had argued that Ryan Salame and Daniel Chapsky could challenge the government’s claims about FTX’s insolvency, and that Nishad Singh changed his testimony under pressure from prosecutors. Kaplan dismissed those claims as “wildly conspiratorial and entirely contradicted by the record.”

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026