Daniel Friedberg, controversial lawyer who served as prime compliance chief at now-defunkt alternate FTX, has reportedly cooperated with United States’ prosecutors investigating FTX collapse.
Friedberg supplied particulars about FTX in a gathering with two dozen investigators maintain by the U.S. Legal professional for the Southern District of New York’s (SDNY) workplace on Nov. 22, Reuters reported.
The assembly included officers from the Justice Division, Federal Bureau of Investigation, and the U.S. Securities and Change Fee, the report notes, citing a supply aware of the matter.
On the assembly, Friedberg supplied prosecutors along with his information of FTX founder Sam Bankman-Fried’s use of buyer funds to finance his unlawful enterprise scheme. He additionally gave particulars of how Bankman-Fried’s hedge fund Alameda Analysis functioned.
The lawyer reportedly expects to be invited as a authorities witness in Bankman-Fried’s October trial. To this point, Friedberg has not been charged and has not been informed that he’s underneath legal investigation.
Whereas prepared to assist U.S. authorities get extra particulars in Bankman-Fried’s case, Friedberg himself has taken measures to cover some private info from the general public.
Shortly after FTX collapsed, Friedberg deleted his LinkedIn profile amid reviews indicating his involvement with the web poker rip-off UltimateBet. He reportedly served as basic counsel at UltimateBet and performed a job in overlaying up that agency’s dishonest scandal again in 2008.
Whereas some reviews suggest that Friedberg joined FTX in March 2020, Bankman-Fried reportedly claimed that he was FTX’s “authorized advisor from the very starting” in 2019. Friedberg additionally reportedly first represented Bankman-Fried as exterior counsel on operating Alameda in 2017.
In line with Reuters’ sources, Friedberg resigned from his place at FTX on Nov. 8, a day after Bankman-Fried disclosed to prime executives that FTX virtually ran out of cash.
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As beforehand reported, Bankman-Fried on Jan. 3 pled not responsible to all legal prices associated to the FTX collapse, together with wire fraud, securities fraud and violations of marketing campaign finance legal guidelines. Beforehand, FTX co-founder Gary Wang and former Alameda Analysis CEO Caroline Ellison pleaded responsible to federal fraud prices in December. Each are actually cooperating with SDNY and the U.S. Securities and Change Fee’s investigation into Bankman-Fried.