New details on the FTX case
2023.01.05 08:11
New details on the FTX case
Budrigannews.com – According to reports, Daniel Friedberg, a controversial lawyer who was the top compliance chief at the now-defunct exchange FTX, has cooperated with US prosecutors who are looking into the collapse of FTX.
According to Reuters, Friedberg discussed FTX in greater detail during a meeting on Nov. 22 with two dozen investigators held by the SDNY office of the U.S. Attorney for the Southern District of New York.
According to the report, which cites a source who is familiar with the situation, the meeting featured representatives from the United States Securities and Exchange Commission, the Federal Bureau of Investigation, and the Justice Department.
Friedberg shared with prosecutors his knowledge of how FTX founder Sam Bankman-Fried used customer funds to finance his illegal business plan at the meeting. He also provided specifics regarding the operation of Bankman-Fried’s hedge fund Alameda Research.
In Bankman-Fried’s October trial, the lawyer reportedly anticipates being invited as a government witness. Friedberg has not been informed that he is the subject of a criminal investigation and has not been charged.
Friedberg has taken steps to conceal some personal information from the general public, despite his willingness to assist U.S. authorities in obtaining additional information regarding Bankman-Fried’s case.
Friedberg deleted his LinkedIn profile shortly after the collapse of FTX amid reports that he was involved with the online poker scam UltimateBet. He reportedly held the position of general counsel at UltimateBet and was involved in covering up that company’s 2008 cheating scandal.
Bankman-Fried reportedly claimed that he was FTX’s “legal advisor from the very beginning” in 2019, despite the fact that some reports indicate that Friedberg joined the company in March 2020. In addition, it is said that Friedberg was Bankman-Fried’s first outside counsel for the management of Alameda in 2017.
As previously mentioned, Bankman-Fried pleaded not guilty on January 3 to all criminal charges pertaining to the FTX collapse, including violations of campaign finance laws, securities fraud, and wire fraud. In the past, in December, former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to federal fraud charges. Both are now assisting SDNY and the Securities and Exchange Commission in their Bankman-Fried investigation.
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