Daniel Friedberg, controversial lawyer who served as high compliance chief at now-defunkt trade FTX, has reportedly cooperated with United States’ prosecutors investigating FTX collapse.
Friedberg offered 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 Trade Fee, the report notes, citing a supply accustomed to the matter.
On the assembly, Friedberg offered prosecutors together 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 date, Friedberg has not been charged and has not been informed that he’s underneath legal investigation.
Whereas keen 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 studies indicating his involvement with the net 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 studies 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 accordance with Reuters’ sources, Friedberg resigned from his place at FTX on Nov. 8, a day after Bankman-Fried disclosed to high executives that FTX virtually ran out of cash.
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As beforehand reported, Bankman-Fried on Jan. 3 pled not guilty to all criminal charges 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 guilty to federal fraud charges in December. Each at the moment are cooperating with SDNY and the U.S. Securities and Trade Fee’s investigation into Bankman-Fried.