- FTX‘s former lawyer Daniel Friedberg has signed a Proffer letter to cooperate with U.S. prosecutors.
- Friedberg disclosed how Bankman-Fried used customer funds to back his business.
- Friedberg hasn’t been charged and wants to be called as a government witness in the FTX case.
According to the latest reports, FTX‘s former top lawyer Daniel Friedberg has signed a Proffer letter to cooperate with U.S. prosecutors in the investigation of the crypto exchange‘s collapse.
On 22 November, Friedberg attended a meeting with several officials from the Justice Department, Federal Bureau of Investigation, and the U.S. Securities and Exchange Commission, in the U.S. Attorney for the Southern District of NY office.
At the meeting, he disclosed information as to how Bankman-Fried used customer funds to financially back his business. Friedberg also revealed details regarding the functioning of Bankman-Fried’s hedge fund Alameda Research.
Reports suggest that Friedberg has not been charged. Friedberg reportedly is expected to be called as a government witness in Bankman-Fried’s October trial.
Days after FTX filed for bankruptcy, two NY-based FBI agents called Friedberg up. Friedberg told them that he was ready to cooperate with investigators if FTX waived his attorney-client privilege. FTX did not agree to do so, however, agreed on certain points that Friedberg could disclose.
Friedberg wrote back to officers:
I want to cooperate in all respects.
For context, with the help of the Proffers Agreement, people can cooperate with an investigation by offering information in exchange for some benefit which mostly involves reduced charges or agreement for a lower charge.
Tech lawyer Margaret Rosenfeld said that the FTX attorney has a top criminal defense lawyer representing him, implying that the Proffer Agreement was very well negotiated. On Tuesday, Bankman-Fried pleaded not guilty in the FTX case in Manhattan federal court.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
