Daniel Friedbergthe former top attorney for Sam Bankman Fried‘s FTXhas reportedly begun working with US prosecutors investigating the cryptocurrency firm’s collapse.
What happened?: At a November meeting with two dozen investigators held at the US Attorney’s Office for the Southern District of New York, Friedberg provided details of FTX FTT/USDReuters reported, citing sources familiar with the matter.
Friedberg also reportedly revealed details of Alameda Research and how his client funds were used to fund Bankman-Fried’s business empire, as well as conversations he had with other top executives.
He has not been charged or told he is under criminal investigation, but is expected to be called as a witness in Bankman-Fried’s trial in October, according to Reuters.
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Why it matters: Bankmann-Fried pleaded not guilty on Tuesday on allegations that he siphoned billions of dollars in FTX client funds to fund his own investments, luxury home purchases and political donations through Alameda.
Manhattan USA Lawyer Damian Williams emphasized the seriousness on those allegations last month, saying, “If you have been involved in wrongdoing at FTX or Alameda, now is the time to preempt it.”
Two former Bankman-Fried employees have already pleaded guilty to fraud and have agreed to cooperate with prosecutors.
Since the collapse of FTX, the entire crypto market has seen a significant drop, with Apex crypto Bitcoin BTC/USD struggling to reach the $18,000 mark and ether ETH/USD Trade below $1,300.
price action: At the time of writing, BTC was trading at $16,847, down 0.02% ETH at $12,544, up 2.7% over the past 24 hours, according to Benzinga Pro.
Continue reading: Bitcoin, Ethereum, Dogecoin Rise on Fed’s Overwhelmingly Bullish Tone: Analyst Sees Further Consolidation for Apex Crypto
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