FTX’s top lawyer Daniel Friedberg cooperated with US prosecutors in their investigation into founder and former chief executive of the collapsed cryptocurrency exchange, Sam-Bankman Fried, according to a Reuters exclusive report.
Bankman-Fried was arrested in December on criminal charges relating to the disappearance of some US$8bn in FTX user funds, which were purportedly used to fund risky investments and political donations through his Alameda Research venture fund.
According to a source familiar with the situation, Friedberg discussed FTX in a meeting with dozens of investigators from various agencies, including the Department of Justice, FBI and the Securities and Exchange Commission (SEC), at the US Attorney's office in New York on 22 November.
The meeting was scheduled via emails seen by Reuters.
Friedberg purportedly told prosecutors what he knew of Bankman-Fried’s comingling of assets between FTX and Alameda.
Despite Friedberg’s knowledge of the potentially illegal activity, it is understood that he is not facing criminal charges, but is expected to be called as a government witness in Bankman-Fried's pending trial.
Bankman-Fried’s former associates Gary Wang and Caroline Ellison have previously agreed to testify against Bankman-Fried as part of a plea bargain.
In December, US Attorney Damian Williams, who is leading the criminal case against Bankman-Fried, called on potentially guilty parties to come forward.
“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it,” stated Williams.