Former FTX chief regulatory officer Daniel Friedberg has been discreetly assisting federal authorities in the case against business founder and CEO Sam Bankman-Fried for alleged cryptocurrency theft. The Department of Justice (DOJ), according to a report from Reuters, has received information from Friedberg about how Bankman-Fried allegedly utilized customer funds to fuel his business empire.
Friedberg has a murky past; in the early 2000s, he worked as an attorney for the now-defunct online gambling site UltimateBet. Friedberg eventually left his position at UltimateBet in 2005 when he was seen on camera advising executives on how to reduce restitution payments to poker players who had been defrauded.
Despite his questionable past, Friedberg hasn’t been accused of a crime or informed that he’s being investigated. He received immunity in return for working with the federal government, and he will likely testify against Bankman-Fried in October. Friedberg is not the only ex-FTX worker who is helping with the investigation. According to reports, FTX affiliates Gary Wang, Caroline Ellison, and Ryan Salame are all supplying the DOJ with material.
People in the cryptocurrency business have been closely following the high-profile case against Bankman-Fried. Bankman-Fried has said that the accusations are “unfounded and without merit” and has denied any misconduct. In an effort to stop the probe, he has also filed a lawsuit, but the judge ultimately decided against him.
The trial, which is scheduled to start in October, will be keenly watched since it could have a significant effect on the direction of the cryptocurrency market. Those who have assisted the inquiry, including Friedberg, may be affected by the case’s conclusion.