Daniel Friedberg, who previously held a senior compliance position at FTX and FTX US, has submitted a statement that may offer support to the lawsuit.
The class action lawsuit targeting celebrities accused of promoting the bankrupt FTX has gained the assistance of former exchange executive Daniel Friedberg, who previously served as the compliance chief.
According to a proposed amended complaint filed on May 11 in a Florida District Court by the class action lawyers, Daniel Friedberg has presented evidence suggesting that the promotional activities for FTX were initiated from Florida.
Friedberg held the position of chief regulatory officer at FTX and served as the chief compliance officer of FTX US, the exchange’s division in the United States.
The submitted declaration has the potential to challenge a significant defense put forward by some defendants, who argued that the Miami court lacks jurisdiction and that the claims have no connection to Florida.
In his sworn testimony, Friedberg stated that FTX US’ vice president of business development, Avinash “Avi” Dabir, was located in Miami and responsible for overseeing brand ambassadors for FTX. These brand ambassadors include defendants in the case, such as Shaquille O’Neal, Larry David, Tom Brady, and FTX founder Sam Bankman-Fried.
We are thrilled to announce our partnership with the legendary @SHAQ (also known as Shaqtoshi)! Check out the exciting collaboration we have in store! (Ref. @SHAQ! (a.k.a. Shaqtoshi) pic.twitter.com/V37UQ5wsXI — FTX (@FTX_Official) June 1, 2022.
Friedberg stated that Dabir worked from an FTX office in Miami in the early part of 2021. The lawyers handling the class action lawsuit argue that this contradicts the claims made by the defendants in their attempts to have the case dismissed.
Certain individuals accused of promoting FTX argued that any conspiracy originating in Florida was impossible since FTX had not planned to relocate to Miami until September 2022, which was before the alleged promotional agreements were made.
The lawyers representing the class action lawsuit are using the newly obtained evidence to revise their legal complaint in an attempt to address the jurisdictional claims made by the defendants in the case. The court will ultimately determine whether the presented evidence is substantial enough to be considered.
The lawsuit was initially filed in mid-November, soon after the exchange’s downfall. Among the celebrities accused of promoting the exchange are Tom Brady’s former wife and model Gisele Bündchen, entrepreneur Kevin O’Leary, basketball star Steph Curry, and the Golden State Warriors basketball team.
Tom Brady has joined FTX as an ambassador, while Gisele will be advising on environmental and social initiatives, the company announced. “We have the opportunity to build something truly extraordinary,” said the Super Bowl champion and entrepreneur. (Ref. @TomBrady https://t.co/yDLC1Q1KFG — FTX (@FTX_Official) June 29, 2021.
On December 16, Friedberg was included as a defendant in an updated legal complaint. It has been reported that he has also provided assistance in other legal cases involving the exchange he previously worked for. ( Ref. lent a hand to other legal proceedings).
A few weeks after the collapse of FTX, investigators from the New York District Attorney, the Justice Department, the Federal Bureau of Investigation (FBI), and the Securities and Exchange Commission (SEC) reportedly obtained information about FTX from Friedberg.