In a lawsuit filed on June 27, lawyers representing bankrupt crypto alternate FTX alleged that a outmoded government Daniel Friedberg served as a “fixer” who covered up the fraudulent nature of the alternate, paying off those that threatened to recount these activities.

Friedberg served as each and every Chief Compliance Officer at FTX and FTX.US, as effectively as Customary Counsel of Alameda Compare. Though he equipped ethical advice to Sam Bankman-Fried and his interior circle since 2017, Friedberg formally joined the FTX Workforce in January 2020 with an annual wage of $300,000 and a signing bonus of $1.4 million.

The criticism alleged that in the 22 months of his tenure, Friedberg actively assisted in diverting the misappropriated funds from the FTX workers for the advantage of insiders. He did this by increasing shell companies and drafting sham intercompany agreements.

The FTX lawyers additional alleged that Friedberg whitewashed the complaints of multiple whistleblowers, one of which used to be filed as early as November 2019. Friedberg equipped the plaintiff’s attorneys’ silence by reportedly paying them $3.3 million.

In any other instance in December 2021, the FTX lawyers found that Friedberg had equipped a outmoded FTX.US employee’s silence by paying her “exorbitant hush cash” when she found the company had engaged in diverse forms of market manipulation.

That connected month, Friedberg allegedly equipped off a third person who tried to recount the FTX Workforce, an authorized expert for Alameda who raised concerns relating to the company’s disbursement of funds to prospects with out cash transmitter licenses. Friedberg then terminated this employee after paying them a severance equipment, the quantity of which has been redacted from the criticism.

In entire, the filing laid out 11 civil prices against the outmoded head of compliance at FTX and claims that he breached his fiduciary duty by enabling funds to be siphoned from the employees of companies for his possess wait on. The FTX lawyers are now taking a watch to claw inspire all compensation he received alongside with punitive and compensatory damages.