Former Compliance Chief of FTX Sued for Paying Off Insiders
The lawyers of defunct crypto exchange FTX are suing the company’s former compliance chief officer Daniel Friedberg for allegedly paying off insiders who threatened to expose the exchange’s illegal activities. The lawsuit claims that Friedberg served as a “fixer,” offering “exorbitant hush money” to potential whistleblowers. He now faces 11 charges, including breach of fiduciary duty and fraudulent transfers.
- The lawsuit alleges that Friedberg played a key role in FTX’s fraudulent schemes.
- The former compliance officer used his knowledge of the business to maintain the fraudulent activities.
- The lawsuit seeks to reclaim payments and tokens received by Friedberg.
FTX in Talks to Relaunch Exchange
Defunct exchange FTX is reportedly in initial talks with investors to revive the international exchange through a joint venture. The relaunch may involve a complete rebranding process and potential compensation arrangements for specific clients. FTX CEO, John J. Ray III, confirmed that the company has begun reaching out to stakeholders for the relaunch of FTX.com.
The lawsuit against Daniel Friedberg sheds light on the alleged fraudulent activities within FTX and the role of its former compliance chief. This case highlights the importance of transparency and proper governance in the cryptocurrency industry. The potential relaunch of FTX presents an opportunity for the exchange to rebuild its reputation and regain the trust of its clients and stakeholders.