In the lawsuit filed Tuesday in Delaware bankruptcy court, FTX’s current caretakers alleged that Friedberg – a lawyer with ties to the notorious UltimateBet online poker cheating scandal – helped Bankman-Fried in the “wholesale raiding of customer exchange deposits.”
Friedberg was allegedly involved in “whitewashing complaints by whistleblowers” about misuse of those funds – at one point paying “exorbitant hush money” to an unnamed former FTX employee who raised alarms, the suit alleged.
“With regard to multiple whistleblower complaints alleging corporate malfeasance, Friedberg served as Bankman-Fried’s fixer,” the complaint said. “He not only settled the complaints for inflated amounts, in some instances he arranged for the FTX Group to retain the whistleblowers’ attorneys post-settlement, thereby buying or otherwise ensuring their silence.”
‘Enforcement 40’ for 2020
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