FTX Group Paid $25 Million In Settlement To Whistleblowers Before Collapse
Sam Bankman-Fried’s (SBF) FTX Group allegedly paid over $25 million in hush money to seven whistleblowers prior to the doomed crypto exchange collapse in November 2022, a bombshell independent examinator’s Thursday report found.
Robert Cleary, the independent examiner tasked with conducting the report, discovered the now-settled claims investigating employee severance packages, as FTX did not record employee complaints.
According to Cleary’s report, the investigation “ultimately identified settlement agreements totaling more than $25 million with seven whistleblowers who alleged various improprieties at the FTX Group, with most of that money going to five of those whistleblowers who raised allegations of systemic improprieties.”
The report further claims that FTX Group failed to investigate whistleblowers’ claims and instead settled them for “considerable amounts,” with the resolutions primarily handled by attorney Daniel Friedberg.
Reading the FTX examiner report, a thread:
Tabasco knew about the hole in the balance sheet of Alameda and the need to keep it secret as early as 2019.
Jail pic.twitter.com/bLaUtPHsYd
— Spreek (@spreekaway) May 23, 2024
One whistleblower (identified as Whistleblower-4) alleged the crypto exchange “misled regulators and investors and lacked adequate corporate structure” in a letter to Bankman-Fried, Friedberg, and FTX’s head of engineering Nishad Singh.
“Shortly after, Friedberg told Whistleblower-4 that he should not have written the letter and, in particular, should not have suggested that the FTX Group may not satisfy investor expectations,” the report stated. “Friedberg further suggested that Whistleblower-4 apologize to Bankman-Fried.”
Ultimately, the unnamed whistleblower allegedly
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