FTX’s former Compliance Officer sued for allegedly bribing potential whistleblowers.

Lawyers representing FTX, the crypto exchange that is now bankrupt and was previously led by Sam Bankman-Fried, are taking legal action against the company’s former compliance officer. They allege that the officer paid off individuals with insider knowledge of the executives’ alleged criminal activities.

The lawsuit, filed on Tuesday, claims that Daniel Friedberg acted as a “fixer” who provided large sums of money to potential whistleblowers in order to prevent them from exposing the exchange’s alleged misuse of user funds. Friedberg is facing 11 charges, including legal malpractice, breach of fiduciary duty, corporate waste, and multiple counts of fraudulent transfers.

The complaint states, “Friedberg had a duty to prioritize the interests of Alameda, FTX… over his own interests and those of other FTX insiders who were unlawfully diverting funds from these entities.” FTX’s lawyers argue that Friedberg breached this duty by allowing billions of dollars to be taken from these entities for his own benefit, as well as the benefit of Bankman-Fried and other FTX insiders.

Read more: The Second FTX Asset Recovery Report Is Packed With Bombshells

Friedberg served as both the chief compliance officer for FTX’s U.S. division and the general counsel for Alameda Research, a sister company, from 2017 until both firms collapsed in November 2022.

The exact amount of money that FTX executives paid to keep insiders quiet has been redacted in the complaint.

The company’s lawyers are seeking to recover the payments, along with interest, that Friedberg received from his $300,000 salary paid by FTX.US and Alameda. They are also requesting the return of 102 million Serum tokens, valued at over $12 million, which were granted to Friedberg by FTX Group during his tenure.

Edited by Nelson Wang.