According to a report, Dan Friedberg, the former CRO of defunct cryptocurrency exchange FTX, is allegedly named in a lawsuit filed by the company, which claims that Friedberg helped disgraced CEO and Democratic super donor Sam Bankman-Fried steal billions of dollars from FTX’s customers.
According to an online media outlet, the new executives of the defunct cryptocurrency network are suing Dan Friedberg, the site’s former Chief Regulatory Officer, for a large sum. The disgraced CEO and Democratic megadonor Sam Bankman-Fried claims that Friedberg acted as his personal “fixer” to help him steal billions of dollars from the platform’s clients.
Caretakers at FTX are suing the company, claiming that Friedberg had a significant role in whitewashing claims by whistleblowers concerning the theft of cash. An ex-FTX employee who stepped forward is said to have been paid an exorbitant amount of money to keep quiet.
Alameda Research was the failed bitcoin hedge fund operated by Bankman-Fried’s ex-girlfriend. Friedberg had high compliance duties and was the general counsel. To support his high-stakes gambling at Alameda, his lavish real estate purchases, and his massive political contributions, Bankman-Fried has been charged with stealing billions of dollars from FTX customers.
FTX claims in its lawsuit that it is entitled to compensation for losses sustained as a result of Friedberg’s legal malpractice, breaches of fiduciary duty, and additional crimes, as well as reimbursement for any monies, bonuses, and other valuables that were unlawfully transferred to Friedberg.
Bankman-Fried’s father, Joe Bankman, was accused in the complaint of endorsing Friedberg and urging his son to give him a “central role” at FTX.
When the hack that enabled select insiders to view players’ concealed cards became public knowledge in the 2000s, UltimateBet, an online poker site, collapsed. Friedberg had previously worked as an attorney for UltimateBet. UltimateBet was shut down after the fraud had swindled high-profile victims out of millions of dollars.
A recording of Friedberg coaching officials at UltimateBet on how to reduce payments for restitution to victims was leaked in 2013. Friedberg was not investigated by police or prosecuted for a crime related to his time spent at UltimateBet.
