{"id":338404,"date":"2023-06-29T00:49:36","date_gmt":"2023-06-28T23:49:36","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=338404"},"modified":"2023-07-08T16:49:57","modified_gmt":"2023-07-08T15:49:57","slug":"ftx-sues-ex-compliance-officer-daniel-friedberg","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ftx-sues-ex-compliance-officer-daniel-friedberg\/","title":{"rendered":"FTX sues ex-compliance officer Daniel Friedberg"},"content":{"rendered":"<p>Current leadership for FTX sued the company's former compliance officer, Daniel Friedberg, as seen in a court filing dated <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.deb.188450\/gov.uscourts.deb.188450.1727.0.pdf\">June 27<\/a>.<\/p>\n<h2>Friedberg allegedly breached duties<\/h2>\n<p>The filing broadly alleges that Friedberg breached his fiduciary duties and engaged in misconduct. Friedberg previously served as Chief Compliance Officer at <a href=\"https:\/\/cryptoslate.com\/companies\/ftx\/\">FTX<\/a>, General Counsel at <a href=\"https:\/\/cryptoslate.com\/companies\/alameda-research\/\">Alameda Research<\/a>, and in other internal and external positions.<\/p>\n<p>Critically, FTX alleged that Friedberg caused the waste of company assets and helped former FTX CEO <a href=\"https:\/\/cryptoslate.com\/people\/sam-bankman-fried\/\">Sam Bankman-Fried<\/a> and other executives divert funds.<\/p>\n<p>FTX specifically said that Friedberg created an entity called North Dimension to commingle and misappropriate funds. It also alleged that, when a planned IPO required an audit, Friedberg created a &#8220;sham&#8221; intercompany agreement to hide transfers.<\/p>\n<p>Furthermore, Friedberg was accused of &#8220;whitewashing&#8221; or covering up whistleblower complaints that concerned the company's misuse and commingling of funds. Friedberg allegedly fired and paid off one whistleblower with a severance package.<\/p>\n<p>Plus, Friedberg also helped carry out billions of dollars of transfers to FTX executives and portrayed those transfers as company loans. In fact, the supposed loans were not repaid and could not have been repaid, according to the filing.<\/p>\n<p>In one section, FTX alleged that the early company was &#8220;insolvent at all relevant times&#8221; and was &#8220;built on a house of cards&#8221; from the time of its creation. FTX asserted that Friedberg supported a scheme that defrauded and hindered customers.<\/p>\n<h2>FTX seeks fines and damages<\/h2>\n<p>FTX, under its current management, now seeks various fines, damages, and disgorgements from Friedberg. It has also asked for certain property to be returned with interest. The relevant amounts will be determined in a future trial.<\/p>\n<p>FTX filed the charges as part of the firm's ongoing bankruptcy proceedings in the U.S. Bankruptcy Court for the District of Delaware.<\/p>\n<p>Other recent reports suggest that FTX is <a href=\"https:\/\/cryptoslate.com\/ftx-invites-investors-to-register-interest-to-restart-rebranded-exchange-report\/\">attempting to restart operations<\/a> under its current leadership. The company owes its users $8.7 billion \u2014 the majority of which has been recovered despite being missing or misappropriated in the past.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Current leadership for FTX sued the company&#8217;s former compliance officer, Daniel Friedberg, as seen in a court filing dated June 27. Friedberg allegedly breached duties The filing broadly alleges that Friedberg breached his fiduciary duties and engaged in misconduct. Friedberg previously served as Chief Compliance Officer at FTX, General Counsel at Alameda Research, and in [&hellip;]<\/p>\n","protected":false},"author":1403,"featured_media":284276,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77901,39,60793],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FTX sues ex-compliance officer Daniel Friedberg<\/title>\n<meta name=\"description\" content=\"Current leadership for FTX sued the company&#039;s former compliance officer, Daniel Friedberg, as seen in a court filing dated June 27.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/ftx-sues-ex-compliance-officer-daniel-friedberg\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FTX sues ex-compliance officer Daniel Friedberg\" \/>\n<meta property=\"og:description\" content=\"Current leadership for FTX sued the company&#039;s former compliance officer, Daniel Friedberg, as seen in a court filing dated June 27.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/ftx-sues-ex-compliance-officer-daniel-friedberg\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-28T23:49:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-08T15:49:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/ftx-trial.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mike Dalton\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mike Dalton\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/ftx-sues-ex-compliance-officer-daniel-friedberg\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/ftx-sues-ex-compliance-officer-daniel-friedberg\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/mike-dalton\/#person\",\"name\":\"Mike Dalton\",\"url\":\"https:\/\/cryptoslate.com\/author\/mike-dalton\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/mike-dalton\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/mike-dalton\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/mike-dalton-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/mike-dalton-author-300x300.jpg\",\"caption\":\"Mike Dalton\"},\"jobTitle\":\"Former Journalist\",\"description\":\"Before transitioning to crypto writing in 2018, Mike studied library and information sciences. 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