Former FTX lawyer expected to testify against Sam Bankman-Fried

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A growing number of associates of former billionaire Sam Bankman-Fried are choosing to cooperate with authorities, who are working to prosecute the FTX co-founder for a slew of criminal fraud charges.

Last month, former Alameda Research chief Caroline Ellison pleaded guilty to defrauding investors. She agreed to cooperate fully with investigators, which spelled bad news for Bankman-Fried. He pleaded not guilty to a series of fraud charges on Tuesday. 

Now, reports indicate that FTX’s former top lawyer Daniel Friedberg has been cooperating for months.

In a meeting on November 22, Friedberg reportedly told 24 investigators from multiple regulatory agencies how Bankman-Fried used customer funds. A source familiar with the matter told Reuters that he explained conversations he had with other top execs about the inappropriate use of customer funds and explained how Alameda, FTX’s sister company also owned by Bankman-Fried, functioned.

Read more: Sam Bankman-Fried expected to plead ‘not guilty’ — but why?

The meeting included officials from the Justice Department, Securities and Exchange Commission (SEC), and the FBI. Reuters reports that Friedman has not been told that he’s under investigation himself, but rather expects to be called as a government witness in the criminal trial against Bankman-Fried.

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