Lawyers for FTX are suing the company's former compliance officer for allegedly paying off would-be whistleblowers who threatened to expose the misappropriation of user funds. By LizKNapolitano
Lawyers for FTX, the now-bankrupt crypto exchange once helmed by Sam Bankman-Fried, are suing the company's former compliance officer for allegedly paying off insiders who were witnesses to its executives' alleged criminal activities.
The complaint, filed Tuesday, alleges Daniel Friedberg served as a"fixer," paying"exorbitant hush money" to would-be whistleblowers who threatened to expose the exchange's alleged misappropriation of user funds. He faces 11 charges, including legal malpractice, breach of fiduciary duty, corporate waste and several counts of fraudulent transfers, according to the lawsuit.
"Friedberg had a duty to place the interests of Alameda, FTX…above the interests of himself and the other FTX insiders who were indiscriminately siphoning funds from those entities," FTX lawyers wrote in the complaint. They added,"Friedberg breached that duty by enabling the raiding of these entities of billions of dollars for his own benefit and the benefit of Bankman-Fried and the other FTX insiders."Friedberg served as both the chief compliance officer to FTX's U.S. arm and general counsel to its sister company Alameda Research from 2017 until the firms' implosions in Nov. 2022.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Utah officer fatally shot man who got hold of Taser that officer dropped, D.A. findsA Saratoga Springs officer was justified when he fatally shot a man who ran at him with the officer’s own Taser, Salt Lake County District Attorney Sim Gill ruled Tuesday.
Read more »
FTX sues Dan Friedberg alleging he used ‘hush money’ to silence whistleblowersFTX has sued the former chief regulatory officer Dan Friedberg, alleging that he paid off whistleblowers who threatened to expose the 'true fraudulent nature' of the exchange.
Read more »
KuCoin Enhances Security and Compliance with Mandatory KYC, Boosting User Experience and TrustIn order to ensure a secure level of regulatory compliance, Tier 1 exchange KuCoin adjusts its 'know-your-customer' requirements
Read more »
Diddy Liquor Dispute: Diageo Dropping Rapper Who Sued For Racial Discrimination, Unfair Promotion Of BrandsDiageo has said it will no longer be working with Sean Combs on Ciroc vodka and DeLeón tequila, and asked the New York Supreme Court to drop the lawsuit Diddy filed against the company.
Read more »
Paramedic calls for accountability after AMR sued over sexual assault allegationsA Bay Area paramedic claims ambulance company American Medical Response routinely looked the other way even before his former coworker was charged with sexual assaults on two elderly patients in the back of an ambulance.
Read more »
Man who sued Buffalo Wild Wings filed new lawsuit over blanketThe man who sued Buffalo Wild Wings over its 'boneless' wings is now suing a home-goods company over a $20 blanket
Read more »