Crypto
Ex-FTX lawyer Dan Friedberg was SBF’s ‘fixer,’ paid ‘hush money’ to whistleblowers: lawsuit
![Ex-FTX lawyer Dan Friedberg was SBF’s ‘fixer,’ paid ‘hush money’ to whistleblowers: lawsuit](https://nypost.com/wp-content/uploads/sites/2/2023/06/daniel-friedberg-sbf.jpg?quality=75&strip=all&1687962841&w=1024)
Former FTX “chief regulatory officer” Dan Friedberg allegedly helped to steal billions of dollars in customer funds at the cryptocurrency platform while serving as a personal “fixer” for disgraced founder Sam Bankman-Fried, according to a bombshell lawsuit.
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.”
Friedberg held top compliance roles at FTX while also serving as the general counsel at Alameda Research – the doomed cryptocurrency hedge fund run by Bankman-Fried’s ex-girlfriend Caroline Ellison.
Bankman-Fried is alleged to have stolen billions in FTX customer funds to prop up risky bets at Alameda, buy up ritzy real estate and make significant political donations. He has pleaded not guilty and is set to face trial in Manhattan federal court on various charges this fall.
In the bankruptcy court filing, FTX officials alleged that Friedberg “personally received millions of dollars in unjustified bonuses and other compensation” while working at the company.
Friedberg was purportedly “rewarded for his 22 months of ‘service at Alameda and the FTX US exchange” with a windfall that included “cryptocurrency worth tens of millions of dollars, as well as handsome monetary compensation and a bonus in excess of $3 million.”
FTX is seeking to claw back the money.
“Plaintiffs seek to recover damages caused by breaches of Friedberg’s fiduciary duties, legal malpractice, and other wrongdoing, and to recover all amounts fraudulently transferred to Friedberg, including any cryptocurrency, bonuses, and any other things of value,” the suit said.
![](https://nypost.com/wp-content/uploads/sites/2/2023/06/NYPICHPDPICT000012739491-1.jpg?w=1024)
The lawsuit alleged that Joe Bankman, Bankman-Fried’s father and a Stanford law professor, had personally vouched for Friedberg and urged his son to give him a “central role” at FTX.
Bankman told his son to “keep Friedberg ‘in the loop…so we have one person on top of everything,’” according to the suit.
An attorney for Friedberg and a representative for Bankman-Fried did not immediately respond to requests for comment on the lawsuit.
In a filing earlier this week, FTX officials mentioned a “senior FTX Group attorney” who had “actively facilitated and covered up the FTX Group’s commingling of customer and corporate funds.”
That filing did not mention Friedberg by name, but the Wall Street Journal reported he was the attorney being referenced.
The previous filing detailed one episode in which the unnamed “attorney-1” had given a $1 million “bonus” to a former Bahamian government official in order to “procure a necessary business license for FTX DM within ten weeks.”
![Dan Friedberg](https://nypost.com/wp-content/uploads/sites/2/2023/02/NYPICHPDPICT000002663578.jpg?w=1024)
Friedberg has faced intense scrutiny since FTX’s stunning collapse into bankruptcy last November.
As The Post reported at the time, Friedberg formerly served as attorney for UltimateBet, a once-popular online poker platform that crumbled in the 2000s following revelations that some insiders had access to an exploit dubbed “God Mode” that allowed them to see players’ hidden cards.
The scheme ensnared prominent victims, including actor Ben Affleck, and bilked players out of tens of millions of dollars before UltimateBet eventually shut down.
In leaked audio published in 2013 and still widely available online, Friedberg coached UltimateBet executives on how to downplay the situation and minimize restitution payments to victims. Friedberg later told NBC News that the meeting was illegally recorded, but did not dispute its authenticity.
Friedberg was never charged with a crime for his work with UltimateBet and there is no indication he was ever investigated by authorities or regulators.
Friedberg has not faced any criminal charges for his work at FTX. In January, Reuters reported that he had flipped on Bankman-Fried and had been cooperating with the feds as they investigated the company’s downfall.
Within days of FTX’s bankruptcy last November, Friedberg reportedly told FBI agents in an email that he wanted “to cooperate in all respects.”
Ellison and at least two other former FTX executives, Nishad Singh and Gary Wang, are also cooperating with authorities.
![](https://newspub.live/wp-content/uploads/2022/03/np-logo.png)
Crypto
Ethereum ETFs imminent after amended S-1s (Cryptocurrency:ETH-USD)
![Ethereum ETFs imminent after amended S-1s (Cryptocurrency:ETH-USD)](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1336282988/image_1336282988.jpg?io=getty-c-w750)
Liliya Filakhtova
Seven financial firms eyeing exchange-traded funds linked to Ethereum (ETH-USD) amended their S-1 filing on Friday, raising expectations of an imminent launch of the first set of ETFs tied to the second-largest cryptocurrency.
According to the industry publication CryptoSlate, Franklin Templeton, VanEck, Invesco Galaxy, BlackRock (BLK), 21Shares, Grayscale, and Fidelity filed updated S-1 documents for their respective funds, while Bitwise did not amend its registration statement.
Among the eight prospective issuers, Franklin Templeton and VanEck announced their ETF fees at 0.19% and 0.20%, respectively.
The filings mark a key step in launching the products after the SEC cleared Ethereum (ETH-USD) ETFs in May in response to applications from firms including Nasdaq (NDAQ), Intercontinental Exchange’s (ICE) NYSE, and Cboe Global Markets (CBOE).
With the amended filings complete, crypto investors will eagerly wait for a potential final approval from the SEC to clear the launch, which, according to Bloomberg ETF analyst Eric Balchunas, could be as early as July 2. “Anyway, that’s basically a wrap. Ball in SEC’s court now,” he wrote on X.
Crypto
Attorney General warns of cryptocurrency scams at event in The Villages
![Attorney General warns of cryptocurrency scams at event in The Villages](https://www.villages-news.com/wp-content/uploads/2024/06/Ashley-Moody-event-in-The-Villages.jpg)
This week, we hosted a Cryptocurrency Scams Symposium in The Villages and recognized the top Seniors vs. Crime volunteers.
Florida is proud to be home to more than 5.5 million seniors. Unfortunately, there are bad actors who try to prey on older Floridians. Our Cyber Fraud Enforcement Unit presented to seniors at the symposium about how to avoid falling victim to cryptocurrency scams.
Protecting Florida’s seniors is one of our top priorities, and we are also grateful for all our Senior Sleuth volunteers’ efforts on behalf of older Floridians.
Last year, Senior Sleuths assisted more than 9,100 Florida seniors, put in more than 11,200 hours of free services and recovered more than $2.6 million. Since 2019, Seniors vs. Crime is responsible for recovering more than $10.5 million.
At the end of the symposium, we named five Super Senior Sleuths, one from each region of Florida for their outstanding work for their fellow seniors.
We also recognized our Senior Sleuth Advocate of the Year, John McLaughlin. Logging more than 10 years as a Seniors vs. Crime volunteer, John uses his background as a law enforcement officer to assist seniors and solve high-value cases.
By assisting those who have been taken advantage of and teaching seniors how to protect themselves from scams and exploitation, we are continuing to build a Stronger, Safer Florida.
Ashley Moody is attorney general of Florida.
Crypto
Electrocoin launches new cryptocurrency exchange platform, Electrocoin Trade
![Electrocoin launches new cryptocurrency exchange platform, Electrocoin Trade](https://crypto.news/app/uploads/2022/09/Cryptocurrencies_in_a_Strong_Uptrend_to_Buy_on_the_Next_Dip_Best_Practices_to_Follow.jpg)
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Croatia’s top crypto exchange, Electrocoin, launches Electrocoin Trade, a crypto exchange platform for EU clients.
One of the biggest cryptocurrency exchange services in Croatia, Electrocoin, has recently launched their new cryptocurrency exchange platform called Electrocoin Trade, providing services for natural and legal clients in the EU.
The platform includes two core services – cryptocurrency exchange and trading service without prior registration to the platform, and cryptocurrency exchange and trading service for registered users. This way, and following the recent regulatory development in the area of crypto regulation, Electrocoin introduced the new custodial model to their service, allowing them to act as a custodian for the assets clients chose to hold on their Electrocoin Trade accounts. By registering with Electrocoin Trade, users get to entrust their cryptocurrencies for safekeeping to a highly regulated platform, as they also get access to additional trading and user experience benefits such as lower trading fees and cryptocurrency portfolio monitoring.
Regardless of the new service, Electrocoin decided to keep the old service as well – any adult citizen in the EU can buy, sell, or trade cryptocurrencies up to 1000 euros without verification or prior registration on the platform. This way, Electrocoin wanted to ensure their existing and future users had an option where they could still access crypto even if they would rather not register with the new platform. This service is possible due to regulatory approval for KYC-less money exchange under certain thresholds.
The platform supports cross-chain transfers and coin-to-coin swaps through a variety of protocols, including ERC-20, Polygon, BEP-20, and many more. Furthermore, with the release of the new platform, Electrocoin has also introduced one new service – paying bills with cryptocurrencies. Users of the platform can use their cryptocurrencies to settle any invoice that can be paid by bank transfer within the EU/SEPA zone. That being said, utility bills such as electricity, water, or internet, or even personal expenses such as vehicles or even real estate, can be paid with cryptocurrencies – as long as the payment recipient has a bank account number.
Electrocoin was founded back in 2014 and has since become an industry leader, introducing PayCek, a crypto payment processor, in 2018. and now the new cryptocurrency exchange platform. The company is committed to communication with the regulator and today, they count over 250,000 successful transactions, along with 24/7 available customer support with an average chat response time of one minute. Electrocoin Trade positions itself as a competitor to other top-tier European cryptocurrency exchanges, with the feature enabling the cryptocurrency exchange without prior identification specifically standing out.
To get started, visit the Electrocoin Trade website.
Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.
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