The defunct cryptocurrency exchange, FTX, has recently initiated legal action against a former regulatory and compliance executive who was previously associated with the exchange. FTX alleges that this individual engaged in a sequence of financial transactions with the intention of discouraging employees from disclosing internal issues within the organization.
Facing legal action on June 27, Daniel Friedberg, who occupied key positions including chief regulatory officer at FTX, chief compliance officer of FTX US, and general counsel at Alameda Research, now finds himself at the center of a lawsuit filed by FTX.
In the complaint lodged against Daniel Fridberg, FTX contends that he served as a “fixer” for Sam Bankman-Fried, the exchange’s co-founder. FTX further alleges that Friedberg facilitated “hush money” payments to two individuals in order to prevent them from disclosing information related to “regulatory issues” and the purported close connections between FTX and Alameda Research.
Contained within the comprehensive 40-page filing, FTX levied 11 civil charges, which included assertions of Friedberg’s breach of legal obligations. The charges also implicated him in authorizing a series of deceitful transfers and “loans” to former FTX executives.
Throughout his tenure spanning 22 months at the exchange, it is alleged that Friedberg received a $300,000 annual salary, a signing bonus amounting to $1.4 million, and an 8% equity stake in FTX US. FTX has expressed its intention to recover these assets, as stated in the complaint.
Certain portions of the complaint, particularly those concerning the specific amount paid to the whistleblower, have been redacted and remain undisclosed.
Also read: FTX Unveils Recovery of $7B in Assets Amidst Chaos
