3 months ago 1 min read

When Former Head Attorney For FTX Cooperates with US Authorities, SBF is Under More Pressure

ftx-bankman-fried-alameda research

SBF undoubtedly increased the pressure because Daniel Friedberg, a former top attorney for FTX, has been collaborating with US authorities to look into the collapse of the cryptocurrency company, according to Reuters.

The source claimed that on November 22, during a meeting with twenty investigators, Friedberg provided information regarding FTX. The meeting took place at the US Attorney's Office for the Southern District of New York, and the source claims that representatives from the Justice Department, the Federal Bureau of Investigation, and the US Securities and Exchange Commission were present. To arrange the meeting with the agencies, Reuters reviewed the emails sent and received by these people.

The source asserted that he informed the prosecution of Fried's use of client monies to sustain his enormous business empire at the meeting. The source claims that Friedberg provided information regarding the activities of Bankman-Fried's fund Alameda Research and discussions he had with other top executives.

Currently, more details regarding Friedberg's role are required. The source asserts that neither he nor anyone else has been made aware that they are being investigated for a crime. According to the source, he expects to be called as a prosecution witness in the Bankman-Fried trial in October.

Bankman-Fried is charged by US prosecutors with transferring billions of dollars from FTX client funds to Alameda to finance venture capital and property purchases as well as high-profile and political donations, But on Tuesday in federal court in Manhattan, he entered a not guilty plea.

Two of Bankman-closest Fried's friends admitted to fraud and promised to cooperate: Gary Wang, a former chief technology officer of FTX, and Caroline Ellison, a former CEO of Alameda. An inquiry for comment was not answered by Ellison's counsel. Wang's lawyer chose not to comment.

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