Monday, January 9, 2023

FTX's former top lawyer aided US authorities in Bankman-Fried case

Friedberg gave details about FTX in a Nov. 22 meeting with two dozen investigators. The meeting, held at the US Attorney for the Southern District of New York's office included officials from the Justice Department, Federal Bureau of Investigation, and the US Securities and Exchange Commission, the source said. Friedberg gave details about FTX in a Nov. 22 meeting with two dozen investigators, the person said. The meeting, held at the US Attorney for the Southern District of New York's office included officials from the Justice Department, Federal Bureau of Investigation, and the US Securities and Exchange Commission, the source said. Emails between attendees scheduling the meeting with those agencies were seen by Reuters. At the meeting, he told prosecutors what he knew of Bankman-Fried's use of customer funds to finance his business empire, the source said. Friedberg recounted conversations he had with other top executives on the subject and provided details of how Bankman-Fried's hedge fund Alameda Research functioned, the source said. Friedberg's cooperation has not been previously reported. He has not been charged and has not been told he is under criminal investigation, the source said. Manhattan US Attorney Damian Williams, who is leading the criminal case against now bankrupt FTX, said last month: "If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it." Two of Bankman-Fried's closest associates, Caroline Ellison, Alameda's former chief executive, and Gary Wang, FTX's former chief technology officer, pleaded guilty to fraud and agreed to cooperate. A lawyer for Ellison didn't respond to a request for comment. Wang's lawyer declined to comment.

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