Former FTX Top Lawyer Helped U.S. Authorities in SBF Case: Reuters

Reuters reported that former top lawyer for FTX, Daniel Friedberg, has reportedly given information to US prosecutors as they investigate the crypto firm’s collapse. Friedberg is said to have provided details about the company, as well as information on the activities of FTX founder Sam Bankman-Fried and his hedge fund Alameda Research, in a November 22 meeting with investigators from various US agencies. 

Friedberg has not been charged in the case, and is expected to be called as a witness in Bankman-Fried’s October trial. Both Friedberg’s lawyer and the FBI did not respond to requests for comment, while the Department of Justice and the Securities and Exchange Commission declined to comment.

Sam Bankman-Fried, founder of FTX and Alameda Research, has been accused of using billions of dollars in FTX client funds to finance personal investments, real estate purchases, and political donations. He pleaded not guilty in a Manhattan federal court on Tuesday. The Manhattan U.S. Attorney, Damian Williams, who is leading the criminal case against FTX, which is now bankrupt, has encouraged individuals involved in misconduct at the company to come forward.

Two of Bankman-Fried’s associates, Caroline Ellison, former CEO of Alameda, and Gary Wang, former CTO of FTX, have already pleaded guilty to fraud and agreed to cooperate with the investigation. Reuters further reported that Lawyers for Ellison and Wang did not respond to or declined requests for comment.

Cooperating with the prosecutors

Friedberg received a call from two FBI agents on November 14 and indicated that he was willing to share information, but needed FTX to waive his attorney-client privilege in order to do so. FTX did not waive the privilege, but did agree on the points that Friedberg could disclose to investigators.

Friedberg then signed proffer letters prepared by the Securities and Exchange Commission and other agencies in a meeting with prosecutors, according to a source and emails viewed by Reuters. Proffer letters are typically used to describe agreements between authorities and individuals who are witnesses or subjects of an investigation.

Reuters further reported that Sam Bankman-Fried, founder of FTX, had previously stated that Daniel Friedberg, former top lawyer for the company, had been with them since the start and had been their legal advisor through all circumstances. This information was published in a blog post on the FTX website, but has since been deleted.