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The lawsuit was filed in Delaware bankruptcy court. The paper alleges that former FTX compliance director Daniel Friedberg actively helped Sam Bankman-Fried and other executives embezzle customer funds. In 2020, he became a staff attorney at FTX and Alameda.
The authors of the lawsuit claim: Friedberg hushed up complaints from employees expressing concerns about FTX and Alameda. Sometimes he was able to settle claims with money, and in some cases he hired law firms to handle the situation.
The plaintiffs are asking that Friedberg be found guilty of malpractice and breach of duty;
FTX filed for bankruptcy in November 2022, after massive withdrawals of customer deposits. New management accused Bankman-Fried and his associates of manipulating customer funds.
At least three executives pleaded guilty to charges brought by U.S. authorities. According to Reuters, Friedberg cooperated with law enforcement in investigating the FTX collapse.
It was recently reported that FTX had begun the process of involving interested parties in the relaunch of the FTX.com site. According to the new CEO John Ray, the bankrupt cryptocurrency company is in talks with investors about a possible relaunch of the exchange through various structures. Management is also discussing possible compensation for some customers, which could include a form of stake in the new company.
FTX filed a lawsuit against K5 Global, Mount Olympus Capital, SGN Albany Capital and their affiliates seeking a $700 million investment refund;