FTX Compliance Officer Accused of Bribing Whistleblowers

FTX Compliance Officer Accused of Bribing Whistleblowers


FTX’s former compliance officer accused of enabling criminal activities

  • Lawyers for FTX are suing the company’s former compliance officer, Daniel Friedberg, for allegedly paying off insiders in order to keep quiet about the exchange’s alleged criminal activities.
  • Friedberg is accused of serving as a “fixer” and paying “exorbitant hush money” to potential whistleblowers who threatened to expose the exchange’s misappropriation of user funds.
  • The lawsuit includes charges such as legal malpractice, breach of fiduciary duty, corporate waste, and fraudulent transfers.
  • FTX lawyers claim that Friedberg prioritized his own interests and those of other insiders over the interests of Alameda, FTX, and its users.
  • The complaint also seeks the return of payments made to Friedberg, including his salary, signing bonus, equity stake, and 102 million Serum tokens worth over $12 million.

FTX’s lawyers have filed a lawsuit against Daniel Friedberg, the former compliance officer of the crypto exchange, accusing him of enabling criminal activities by paying off insiders. According to the complaint, Friedberg acted as a “fixer” and paid large sums of money to potential whistleblowers who threatened to expose the exchange’s alleged misappropriation of user funds. The lawsuit includes charges such as legal malpractice, breach of fiduciary duty, corporate waste, and fraudulent transfers. FTX lawyers assert that Friedberg prioritized his own interests and those of other insiders over the interests of the company and its users. They are seeking the return of payments made to Friedberg, including his salary, signing bonus, equity stake, and Serum tokens.

Hot Take

The allegations against FTX’s former compliance officer, Daniel Friedberg, are serious and highlight the potential risks within the cryptocurrency industry. It raises concerns about the integrity of exchanges and the need for strong compliance measures. This case serves as a reminder that individuals in positions of power and responsibility must prioritize the interests of the company and its users. The outcome of this lawsuit will likely have significant implications for the crypto industry and may influence regulatory efforts to strengthen oversight and accountability.

Continue reading on Bitcoin.com

Stay ahead in the crypto world with our newsletter!

Subscribe now for the latest updates, insights, and trends in the cryptocurrency market.

Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.
Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!

Email me the hottest Crypto news!

You may also like

Share via
Share via