1 year ago
Lawyers for FTX, the now-bankrupt crypto speech erstwhile helmed by Sam Bankman-Fried, are suing the company's erstwhile compliance serviceman for allegedly paying disconnected insiders who were witnesses to its executives' alleged transgression activities.
The complaint, filed Tuesday, alleges Daniel Friedberg served arsenic a "fixer," paying "exorbitant hush money" to would-be whistleblowers who threatened to exposure the exchange's alleged misappropriation of idiosyncratic funds. He faces 11 charges, including ineligible malpractice, breach of fiduciary duty, firm discarded and respective counts of fraudulent transfers, according to the lawsuit.
"Friedberg had a work to spot the interests of Alameda, FTX…above the interests of himself and the different FTX insiders who were indiscriminately siphoning funds from those entities," FTX lawyers wrote successful the complaint.
They added, "Friedberg breached that work by enabling the raiding of these entities of billions of dollars for his ain payment and the payment of Bankman-Fried and the different FTX insiders."
Friedberg served arsenic some the main compliance serviceman to FTX's U.S. limb and wide counsel to its sister institution Alameda Research from 2017 until the firms' implosions successful Nov. 2022.
The magnitude of wealth FTX executives paid to support insiders quiescent is redacted successful the complaint.
The company's lawyers are seeking to reclaim payments positive involvement connected Friedberg's $300,000 wage paid by some FTX.US and Alameda, successful summation to his $1.4 cardinal signing bonus and an equity involvement successful FTX.US.
They person besides requested the instrumentality of 102 cardinal Serum tokens, worthy much than $12 million, that FTX Group granted Friedberg during his tenure.
Edited by Nelson Wang.
English (US) 