Daniel Friedbergformer top lawyer for Sam Bankman-Fried‘s ftxhas reportedly begun cooperating with US prosecutors as they probe the collapse of the cryptocurrency firm.
What happenedFriedberg provided details about FTX in a November meeting with two dozen investigators held at the US Attorney’s Office for the Southern District of New York. ftt/usdReuters reported, citing sources familiar with the matter.
Friedberg allegedly disclosed details of Alameda Research and how its client funds were used to finance Bankman-Fried’s business empire, as well as his conversations with other top executives.
She has not been charged or said she is under criminal investigation, but is expected to be called as a witness at Bankman-Fried’s October trial, according to Reuters.
See more: Best Crypto Day Trading Strategies
why it matters: Bankman-Fried pleaded not guilty on Tuesday to allegations that he had diverted billions of dollars in FTX client funds to finance his own investments, luxury real estate purchases, and political donations through Alameda.
Manhattan US Representative damian williams stressed serious nature about these allegations last month, saying, “If you have participated in misconduct at FTX or Alameda, now is the time to move past it.”
Two former associates of Bankman-Fried have already pleaded guilty to fraud and have agreed to cooperate with prosecutors.
Since the collapse of FTX, the overall crypto market has seen a significant drop with Apex Crypto Bitcoin BTC/USD struggling to reach the $18,000 mark and Ethereum ETH/USD It is trading below $1,300.
price action: At the time of writing, BTC was trading down 0.02% at $16,847, and ETH at $12,544, up 2.7% in the last 24 hours, According to Benzinga Pro.