FTX’s former bankruptcy attorney, Daniel Friedberg, has agreed to release details of the company to US prosecutors as they investigate FTX’s collapse. This comes after the Manhattan US Attorney’s Office announced plans to form the FTX Task Force on January 3. This task force will focus on investigating and seeking asset recovery for the victims in the FTX case.
Sam Bankman-fried under pressure
Attorney Daniel Friedberg’s cooperation with the federal prosecutor has increased the pressure on FTX founder Sam Bankman-Fried, who is currently under house arrest at his parents’ home.
According to Reuters, Daniel provided details of FTX during a November 22 meeting with the US Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the Securities and Exchange Commission (SEC).
In the meeting, Daniel Friedberg provided all the details he knew about FTX and Bankman-Fried’s use of client funds, including confirmation that Bankman-Fried used the funds to finance its businesses.
In addition, Daniel also provided a detailed account of conversations between himself and other top executives at the company, also revealing Bankman-Fried’s Alameda investigative operations. According to the sources, Daniel Friedberg has not been charged with any crime, as he agreed to be a government witness for the Bankman-Fried trial in October. However, Friedberg’s attorney, the FBI, FTX, SEC, and a Bankman-Fried spokesperson declined to comment or provide details on the matter.
Sam Bankman-Fried has been accused of transferring billions of dollars of FTX client funds to Alameda Research for venture investments, luxury real estate purchases and political donations. On January 3, Bankman-Fried pleaded not guilty to charges of misleading investors in a deposition in Manhattan federal court. He has denied all charges, which accuse him of defrauding FTX clients and using the funds for personal use. The next tentative trial date has been scheduled for October 2, 2023.
This post Former FTX lawyer to assist in investigations, will disclose confidential company information
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