• FTX has filed a lawsuit against former regulatory and compliance executive Daniel Friedberg, alleging he made payments to whistleblowers to prevent them from exposing the “true fraudulent nature” of the exchange.
• The lawsuit claims that Friedberg was given a $300,000 salary, a signing bonus of $1.4 million, a separate $3 million cash bonus, an 8% equity in FTX US and crypto “worth tens of millions” — all of which FTX is seeking to claw back.
• Friedberg allegedly made “hush money” payments to two potential whistleblowers to stop them from leaking information about “regulatory issues” and the alleged close ties between FTX and Alameda.
FTX Alleges Former Exec Used ‘Hush Money’ To Silence Whistleblowers
FTX has filed a lawsuit against former regulatory and compliance executive Daniel Friedberg alleging that he paid whistleblowers in an attempt to keep them from exposing the “true fraudulent nature” of the exchange. The complaint claims that Friedberg was given an excessive salary package including a $300,000 salary, a signing bonus of $1.4 million, a separate $3 million cash bonus, an 8% equity in FTX US and crypto “worth tens of millions” — all of which FTX is now trying to reclaim.
The Hush Money Payments
According to the suit, Friedberg allegedly made “hush money” payments to two potential whistleblowers in order to prevent them from leaking information about possible regulatory issues as well as any potential connections between FTX and Alameda Research. In one instance it is alleged that after paying one whistleblower settlement he then proceeded retained their attorney thus attempting buy their silence on the matter.
Friedberg’s Salary Package
The 40-page filing includes 11 civil charges ranging from breach of legal duties up until approving fraudulent transfers and loans between various ex-FTX executives with some parts such as details regarding amounts paid for settlements being redacted from the document itself. The complaint also outlines how much money was offered by way of compensation during his 22-month stint at the exchange – which included his aforementioned salary package consisting not only of cash but also cryptocurrency assets worth tens of millions – all part of what is now being sought out by FTT in its complaint against him.
The March 2022 Incident
In March 2022 another incident occurred involving another female employee who had worked for less than two months at United States-based branch earning her $200,000 salary only for her departure through what can be described as an extraordinary settlement offer – further compounded by her attorneys retention fee amounting up too $12 million dollars – both part of this same case against Mr Friedberg by FTT Exchange.
It appears that this case will be going forward as planned with FTT Exchange looking into reclaiming not only all sums mentioned above but possibly more depending on how those who are involved testify when called upon so – over time more will become known about this case until then we can expect more news coming soon regarding it’s progress if any at all takes place or not remains yet unseen however regardless it might end up leading too interesting developments within both FTT Exchange and Alameda Research so time will tell where this leaves us next regarding this issue or any others related too it .