Ex-Top FTX Lawyer Now Reportedly Aiding US Investigation into Crypto Firm's Collapse

Daniel Friedberg, Sam Bankman-Fried's former top FTX lawyer, has reportedly started cooperating with US prosecutors as they investigate the cryptocurrency firm's collapse .

What Happened: In a November meeting with two dozen investigators held at the U.S. Attorney's Office for the Southern District of New York, Friedberg provided details about FTX FTT/USD, Reuters reported, citing sources familiar with the matter.

Friedberg also reportedly revealed details about Alameda Research and how its client funds were used to fund the Bankman-Fried business empire, as well as conversations he had with other senior executives.

He has not been charged or told he is facing a criminal investigation, but is expected to be called as a witness at the Bankman-Fried trial in October, according to Reuters .

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Why it matters: Bankman-Fried pleaded not guilty on Tuesday to allegations that he embezzled billions of dollars in FTX client funds to finance his own investments, real estate purchases of luxury and political donations through Alameda.

Manhattan U.S. Attorney Damian Williams underscored the seriousness of these charges last month: "If you participated in misconduct at FTX or Alameda, now is the time to take action. 'advance."< /p>

Two of Bankman-Fried's former associates have already pleaded guilty to fraud and agreed to cooperate with prosecutors.

Since the collapse of FTX, the overall crypto market has seen a significant decline, with apex cryptocurrency 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 last 24 hours, according to Benzinga Pro.< /p>

Read more: Bitcoin, Ethereum, Dogecoin rise on mostly bullish tone of The Fed: Analyst More Consolidation for Apex Crypto

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