FTX's Legal Showdown - Former Compliance Officer Sued as Billions in Customer Funds Vanish

-

Lawsuit

In what can only be described as a dream season for corporate attorneys, FTX has stepped into the legal arena by filing a lawsuit against its former compliance officer, Daniel Friedberg.

The lawsuit alleges that Mr. Friedberg's actions were the catalyst behind the misappropriation of billions of customer funds by individuals such as Sam Bankman-Fried and others.

FTX suffered a major setback towards the end of last year when the excitement of the crypto boom came crashing down, and life slowly returned to normal in the post-COVID era.

Here are the allegations as laid out in the lawsuit:

Friedberg and others facilitated the routing of billions of dollars in purported profits of the FTX Group to the FTX Insiders, and their families, friends, and other acquaintances through purported personal ‘loans,’ bonuses, ‘investments,’ and all other means of transfer, including real estate purchases and hundreds of millions of dollars in charitable and political contributions.


For those unfamiliar with FTX, it operated as a cryptocurrency money exchange, founded by Sam Bankman-Fried in 2019. It allowed users to buy, sell, hold, and trade cryptocurrencies. At the height of its popularity, FTX garnered support from numerous celebrities, including Tom Brady and his wife, Gisele Bündchen. Notable figures like NBA athlete Stephen Curry, tennis star Naomi Osaka, and others also joined as advisors for environmental and social initiatives.

Sources:

Bloomberg

Comments

Post a Comment

Trending Now

Meet Microsoft Graveyard - A Monument of Products Killed By Microsoft

-
Image
Much to my envy, a site I had long hoped to set up was established this week. I often wondered why there was no "Killed by Microsoft" counterpart to Google's "Killed by Google," and the wait is finally over. Launched by Victor Frye, the Microsoft Graveyard is an open-source compilation showcasing discontinued Microsoft-made software and hardware. It's worth noting that the site has no affiliations with Microsoft itself. According to the developer, the website is a "passion project" born out of a fondness for many of these products that met an untimely end. Among them are some of the recent casualties including WordPad , Visual Studio for Mac , Cortana , Windows Phone alongside some late distant memories like ASP.Net Web Matrix, Microsoft Bob, Windows Vista and Zune. The Microsoft Graveyard encourages contributions as it's an open-source project hosted on GitHub . You are welcome to add missing items, correct typos, suggest improveme
Read more

China's Impersonation And Misinformation Crackdown: 67K Accounts, 1.4M Posts Vanished

-
Image
The Cyberspace Administration of China (CAC) recently completed a two-month probe targeting social media activities, resulting in the deletion of over 1.4M posts and 67K accounts. The investigation focused on issues such as impersonation of government officials and the spread of misinformation. "Self-media" accounts, which are independent news and information sources not owned by the state, were particularly scrutinized, with popular apps like WeChat , Douyin , and Weibo being closely monitored. As part of the crackdown, the CAC specifically targeted fake military accounts (around 13K identified) and accounts impersonating public institutions (approximately 25K). Punishments were also meted out to 187K accounts for impersonating news media businesses and 430K accounts for providing professional advice or educational services without the necessary qualifications. This extensive social media cleanup campaign by the CAC follows similar actions in the past. Accoding to CAC ,
Read more

Gamers Lawsuit Accused Microsoft of Conspiring to Eliminate Sony's PlayStation

-
Image
Microsoft finds itself entangled in multiple legal battles, proving that its fight knows no rest. While the tech giant prepares to challenge the block on its proposed acquisition of Activision-Blizzard in both the UK and the United States, it also faces a smaller yet significant side battle—a lawsuit brought forth by a group of gamers. The lawyers representing the gamers recently unveiled an alleged internal email exchange between Matt Booty, the Head of Microsoft Xbox Game Studios, and Tim Stuart, Microsoft's CFO for Xbox. Although the exact contents of the email remain redacted, it is said to contain "uncontroverted evidence" that Microsoft aimed to eliminate its main competitor, Sony PlayStation, from the market. Microsoft has countered the claims by stating that the email was sent in 2019 and is unrelated to the acquisition of Activision-Blizzard in early 2022. However, when approached by Axios , the company refused to disclose the c
Read more