{"id":535762,"date":"2023-01-05T21:22:45","date_gmt":"2023-01-05T18:22:45","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/daniel-friedberg-flips-on-ftxs-sam-bankman-fried\/"},"modified":"2023-01-05T21:22:45","modified_gmt":"2023-01-05T18:22:45","slug":"daniel-friedberg-flips-on-ftxs-sam-bankman-fried","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/daniel-friedberg-flips-on-ftxs-sam-bankman-fried\/","title":{"rendered":"#Daniel Friedberg flips on FTX&#8217;s Sam Bankman-Fried"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a283ea320ff0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a283ea320ff0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/daniel-friedberg-flips-on-ftxs-sam-bankman-fried\/#%E2%80%9CDaniel_Friedberg_flips_on_FTXs_Sam_Bankman-Fried%E2%80%9D\" >&#8220;Daniel Friedberg flips on FTX&#8217;s Sam Bankman-Fried&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CDaniel_Friedberg_flips_on_FTXs_Sam_Bankman-Fried%E2%80%9D\"><\/span>&#8220;Daniel Friedberg flips on FTX&#8217;s Sam Bankman-Fried&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Daniel Friedberg \u2014 the former FTX \u201cchief regulatory officer\u201d who was tied to a notorious online poker cheating scandal \u2014 has reportedly flipped on Sam Bankman-Fried and has been cooperating with the feds in the epic crypto fraud case.<\/p>\n<p>Friedberg, a member of Bankman-Fried\u2019s inner circle and key legal adviser at FTX, met with investigators on Nov. 22 and detailed how the disgraced founder used customer funds \u201cto finance his business empire,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/finance\/ftxs-former-top-lawyer-aided-us-authorities-bankman-fried-case-2023-01-05\/\">Reuters reported<\/a> on Thursday, citing a source with knowledge of the matter.<\/p>\n<p>The former FTX lawyer reportedly has also dished to the feds about his conversations with other top executives about the user of customer funds, as well as the inner workings of Bankman-Fried\u2019s cryptocurrency hedge fund, Alameda Research.<\/p>\n<p>Friedberg\u2019s involvement at FTX triggered alarm bells after The Post and others reported the details of his behind-the-scenes work for UltimateBet \u2013 a defunct poker site that collapsed after executives were discovered to have used a software exploit dubbed \u201cGod mode\u201d to bilk players out of tens of millions of dollars from 2005 through 2008.<\/p>\n<p>The scandal drew national headlines, including a lengthy segment on \u201c60 Minutes\u201d in 2008.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/Dan-Friedberg-ftx-008.jpg?w=1024\" alt=\"Dan Freidberg\" class=\"wp-image-25247774\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/Dan-Friedberg-ftx-008.jpg?quality=75&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/Dan-Friedberg-ftx-008.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/Dan-Friedberg-ftx-008.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Dan Freidberg served as FTX\u2019s chief regulatory officer.<\/figcaption><\/figure>\n<p>The FBI first contacted Friedberg on Nov. 14, just three days after FTX filed for bankruptcy. Friedberg resigned from his in-house role at FTX on Nov. 8 after learning the extent of the platform\u2019s financial problems.<\/p>\n<p>Following the contact, Friedberg asked FTX if he could waive his attorney-client privilege and speak to the authorities. FTX reportedly declined the request but cleared him to speak about certain points of knowledge.<\/p>\n<p>\u201cI want to cooperate in all respects,\u201d Friedberg told FBI agents in an email.<\/p>\n<p>Aside from Friedberg, attendees at the Nov. 22 meeting included officials from the Justice Department, the FBI and the Securities and Exchange Commission, according to the report.<\/p>\n<p>The source said Friedberg has not been charged with a crime or told that he is under investigation in connection to the FTX case. Friedberg expects to testify against Bankman-Fried during his criminal trial in October, according to Reuters.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/sbf-67.jpg?w=1024\" alt=\"Sam Bankman-Fried\" class=\"wp-image-25247772\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/sbf-67.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/sbf-67.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/sbf-67.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Sam Bankman-Fried faces 115 years in prison.<\/figcaption><figcaption><span class=\"credit\">Matthew McDermott<\/span><\/figcaption><\/figure>\n<p>In a 2020 blog post that has since been deleted, Bankman-Fried described Friedberg as FTX\u2019s legal adviser \u201cfrom the very beginning.\u201d Friedberg also advised Bankman-Fried on how to run Alameda during its launch.<\/p>\n<p>Friedberg quietly scrubbed his personal LinkedIn page as the company collapsed. Separately, FTX took down a bio page detailing Friedberg\u2019s background.<\/p>\n<p>As The Post reported, Friedberg was an attorney for UltimateBet and was caught on tape advising executives on how to minimize restitution payments to the poker players who were scammed. <\/p>\n<p>In the leaked audio published in 2013 and still widely available online, Friedberg advised the executives on a strategy to shortchange victims by withholding the extent of the scheme and pinning the blame on a fictitious \u201cformer consultant\u201d who \u201ctook advantage of a server flaw.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"766\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/Dan-Friedberg-ftx-012.jpg?w=1024\" alt=\"UltimateBet\" class=\"wp-image-25247776\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/Dan-Friedberg-ftx-012.jpg?quality=75&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/Dan-Friedberg-ftx-012.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/Dan-Friedberg-ftx-012.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Friedberg has ties to the notorious UltimateBet online poker cheating scandal.<\/figcaption><\/figure>\n<p>\u201cI think, for the public, it just has to be, \u2018Former consultant to the company took advantage of a server flaw by hacking into the client, unable to identify exactly when,\u2019\u201d Friedberg allegedly said on the tape, dictating a potential <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a> for executives to use.<\/p>\n<p>Friedberg was never charged with a crime for his work with UltimateBet and there is no indication he was ever investigated by regulators or authorities.<\/p>\n<p>When asked about his ties to UltimateBet during <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nbcnews.com\/news\/ftxs-regulatory-chief-4-job-titles-2-years-was-really-rcna57965\">an interview with NBC News<\/a> in November, Friedberg said his meeting with officials was illegally recorded but did not dispute its authenticity.<\/p>\n<p>Reuters said Friedberg\u2019s lawyer, Telemachus Kasulis, the FBI and FTX did not return requests for comment. The SEC, the DOJ and a spokesperson for Bankman-Fried declined to comment.<\/p>\n<p>In November, Ryan Salame, the former co-CEO of FTX Digital Markets, tipped off officials in the Bahamas that FTX client funds were being secretly transferred to \u201ccover financial losses\u201d at Alameda Research.<\/p>\n<p>Bankman-Fried\u2019s ex-lover, former Alameda Research CEO Caroline Ellison, is also cooperating with the feds, as is FTX co-founder Gary Wang.<\/p>\n<p>Bankman-Fried faces eight federal charges over claims that he bilked FTX customers out of billions of dollars that were used to fund a lavish lifestyle and prop up risky bets at Alameda. The ex-billionaire pleaded not guilty in a Manhattan court earlier this week.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2023\/01\/05\/daniel-friedberg-flips-on-ftxs-sam-bankman-fried\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Daniel Friedberg flips on FTX&#8217;s Sam Bankman-Fried&#8221; Daniel Friedberg \u2014 the former FTX \u201cchief regulatory officer\u201d who was tied to a notorious online poker cheating scandal \u2014 has reportedly flipped on Sam Bankman-Fried and has been cooperating with the feds in the epic crypto fraud case. Friedberg, a member of Bankman-Fried\u2019s inner circle and key&#8230;<\/p>\n","protected":false},"author":1,"featured_media":535763,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/sbf-1.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[135234,89897,138036,76127,89645,138071,71007],"class_list":["post-535762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ftx","tag-sam-bankman-fried","tag-1-5-23","tag-cryptocurrency","tag-online-gambling","tag-poker","tag-scandals"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/535762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=535762"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/535762\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/535763"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=535762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=535762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=535762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}