Daniel Friedberg, the former head of FTX’s legal department, has reportedly provided assistance to U.S. prosecutors in their investigation into the failure of the cryptocurrency firm, as reported by Reuters, citing a source familiar with the situation told.
According to a source, Daniel Friedberg met with U.S. prosecutors on November 22nd to provide information about the cryptocurrency firm. Officials from the Justice Department, the FBI, and the SEC attended the meeting, which was conducted at the Southern District of New York’s U.S. Attorney’s office.
Friedberg received a call from two FBI agents on November 14th, following FTX’s bankruptcy filing on November 11th. He told the agents he was willing to share information with them but needed FTX to waive his attorney-client privilege.
He requested the waiver in a letter to FTX the following day, but FTX did not grant the request. However, the company did agree on the points that he could disclose to investigators, according to a source and emails viewed by Reuters.
He then informed the FBI agents of his willingness to cooperate in all respects. The U.S. Attorney’s Office arranged a meeting where Friedberg signed proffer letters, which typically outline a potential agreement between authorities and individuals involved in an investigation.
Friedberg discussed Sam Bankman-Fried’s alleged use of customer funds to finance his business empire and provided information on how Bankman-Fried’s hedge fund, Alameda Research, operated.
His involvement in the matter has not been previously disclosed. When contacted for comment on his cooperation, Friedberg, the FBI, and FTX did not respond to Reuters.
FTX Ex-CEO Pleads Not Guilty
Last month, Manhattan U.S. Attorney Damian Williams, who is in charge of the criminal case against the now-bankrupt FTX, told SBF that if he had been involved in any misconduct at the exchange or Alameda, it would be in his best interest to confess before it is too late.
But, As TronWeekly reported on January 4th, In Manhattan federal court in New York, SBF denied the accusations, and “the judge in the case set a trial date of October 2nd.”
Whereas Gary Wang, the former chief technology officer of FTX, and Caroline Ellison, the former CEO of Alameda, two of his closest allies, both admitted to fraud and agreed to collaborate.
Nevertheless, Friedberg is expected to be called as a witness in Bankman-Fried’s October trial, during which SBF will face accusations of diverting billions of dollars in FTX of client funds to Alameda for personal use.