Dan Friedberg, the former Chief Regulatory Officer of bankrupt cryptocurrency platform FTX, has reportedly been implicated in a lawsuit by the company that accuses him of aiding in the theft of billions of dollars from the platform’s customers by disgraced CEO and Democrat super donor Sam Bankman-Fried.
The New York Post reports that Dan Friedberg, the former Chief Regulatory Officer of bankrupt cryptocurrency platform FTX, finds himself at the center of a high-stakes lawsuit filed by the failed company’s new executives. Friedberg is accused of aiding in the theft of billions of dollars from the platform’s customers, allegedly acting as a personal “fixer” for the platform’s founder, disgraced CEO and Democrat super donor Sam Bankman-Fried.
FTX founder Sam Bankman-Fried (second on left) is led away in handcuffs by officers of the Royal Bahamas Police Force in Nassau, Bahamas, on December 13, 2022. (MARIO DUNCANSON/AFP via Getty Images)
The lawsuit from the FTX caretakers alleges that Friedberg was deeply involved in “whitewashing complaints by whistleblowers” about the misappropriation of funds. It also alleges that he resorted to paying “exorbitant hush money” to a former FTX employee who had the courage to raise concerns.
Friedberg’s influence extended beyond FTX, as he also held senior compliance roles and served as the general counsel at Alameda Research, SBF’s now-defunct cryptocurrency hedge fund run by his ex-girlfriend. Bankman-Fried himself is accused of stealing billions from FTX customer funds to fuel risky bets at Alameda, acquire luxurious real estate, and make substantial political donations.
The lawsuit further alleges that Friedberg received millions of dollars in unjustified bonuses and other compensation during his tenure at the company. FTX is now seeking to recover these funds, which amount to a mere drop in the bucket when compared to the total amount of customer investments allegedly looted by SBF and his cronies.
Friedberg’s past is not without controversy. He has been linked to the infamous UltimateBet poker cheating scandal and has been under intense scrutiny since FTX’s dramatic collapse into bankruptcy last November. Despite these serious allegations, Friedberg has not faced any criminal charges for his work at FTX. Reports suggest that he is now cooperating with federal authorities as they delve into the company’s downfall.
Read more at the New York Post here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan
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