- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Jeff Dale2023-06-29T18:40:00
The former chief compliance officer at cryptocurrency exchange FTX paid off whistleblowers and their lawyers trying to expose the company’s fraud, according to a lawsuit filed in bankruptcy court by FTX and its debtors.
Daniel Friedberg, a longtime outside counsel for FTX and its former Chief Executive Sam Bankman-Fried, was formally hired in January 2020, according to the complaint filed in U.S. Bankruptcy Court for the District of Delaware on Tuesday.
Friedberg, per the complaint, served as both CCO of the FTX US exchange and general counsel of Bankman-Fried’s crypto hedge fund Alameda Research, which Bankman-Fried allegedly used to comingle customer assets and ultimately collapse both businesses in November.
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FTX Trading and the Commodity Futures Trading Commission have agreed on a $4 billion settlement in bankruptcy court to settle the CFTC’s lawsuit against the failed crypto trading platform.
New York-based investment adviser D. E. Shaw & Co. will pay a $10 million penalty to settle charges brought by the Securities and Exchange Commission that the company raised impediments to whistleblowing by employees.
The ex-chief compliance officer at Payqwick, a California-based money transmitter that serviced the cannabis industry, is suing her former employer alleging wrongful termination and whistleblower retaliation over lax disclosures related to an acquisition.
The Consumer Financial Protection Bureau is warning companies against intimidating potential whistleblowers by forcing them to sign broad nondisclosure agreements to deter misconduct from coming to light.
A whistleblower will be paid $37 million by the Securities and Exchange Commission for providing original, credible information that led to a successful enforcement action.
Anonymous employees of OpenAI accused the company of requiring employees to sign nondisclosure agreements (NDAs) that “prohibited and discouraged” them from reporting securities law violations to federal regulators.
