Daniel Friedberg, the former top lawyer for Sam Bankman-Fried's FTX, has reportedly begun cooperating with U.S. prosecutors as they investigate the cryptocurrency firm's collapse.
What Happened: At a November meeting with two dozen investigators held at the U.S. Attorney for the Southern District of New York's office, Friedberg provided details about FTX FTT/USD, Reuters reported, citing sources familiar with the matter.
Friedberg also reportedly revealed details of Alameda Research and how its customer funds were used to finance Bankman-Fried's business empire, as well as conversations he had with other top executives.
He has not been charged or told he is under criminal investigation but is expected to be called as a witness in Bankman-Fried's October trial, as per Reuters.
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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 U.S. Attorney Damian Williams stressed the serious nature of these accusations last month, saying, "If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it."
Two of Bankman-Fried's former associates have already pleaded guilty to fraud and agreed to cooperate with prosecutors.
Since FTX's collapse, the overall crypto market has seen a significant dip, with apex crypto Bitcoin BTC/USD struggling to reach the $18,000 mark and Ethereum ETH/USD trading below $1,300.
Price Action: At the time of writing, BTC was trading at $16,847, down 0.02%, and ETH at $12,544, up 2.7%, in the past 24 hours, according to Benzinga Pro.
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