FTX Lawyer Was Key Figure in Notorious UltimateBet Poker Cheating Scandal

The chief regulatory ship's officer of disgraced crypto interchange FTX and its one-time full general counsel, Dan Friedberg, has history. The Seattle Wash.-based lawyer was a Florida key enter inward 1 of poker’s most notorious cheating scandals.

FTX, formerly i of the world’s biggest crypto exchanges, collapsed spectacularly earlier this month. That was after documents leaked to crypto intelligence land site CoinDesk suggested that the group’s hedging fund, Alameda, was using FTX’s FTT item to do risky loans. The revelation prompted a major sell-off of FTT by Binance, sparking a half mask effect.

FTX could non grapple with the feed on its exchange, because Alameda had traded and lost $8 one million million of FTX customer funds.

Friedberg resigned from FTX before this month, simply as the dump strike the fan.

But endorse in 2008, when bitcoin was ease simply a fledgeling interference fringe experiment, in that respect was another tale of incorporated malfeasance doing the rounds, and Friedberg as mired in that unity too.

God Mode

The UltimateBet (UB) cheating outrage was perhaps the darkest chapter inward the chronicle of online poker, and it has some contenders.

It was unearthed by players themselves, who suspected the existence of a so-called “God-Mode,” or “super-user” calculate built into the UB software. This allowed users to swordplay while viewing opponents’ hollow cards, they theorized, and they shared their grounds online.

In a February 2008 statement, UB confirmed the existence of the account, known as AuditMonster2. The companion claimed the cheating had been perpetrated past employees of the former owner, Excapsa Software, and it had deleted the account.

On Sep 29, 2008, UB’s regulator, the Kahnawake Gaming Commission said it had “found readable and convincing evidence” that Russ Hamilton, a UB shareholder and former World Series of Poker champion, “was the main individual responsible” for the cheating,

Hamilton and other UB employees had bilked fire hook players out of an estimated $20 million.

Caught on Tape

In 2013, audiotapes were leaked past Hamilton’s longtime assistant, Travis Makar, to the 2+2 poker forums. They supposedly recorded Hamilton, Friedberg and other UB execs discussing impairment restriction as the scandal skint in betimes 2008.

“I think, for the public, it just now has to be, ‘former consultant to the companion took vantage of a server flaw by hacking into the client, unable to identify exactly when,’” Friedberg allegedly said on the tape, as those submit at the group meeting discussed how to avoid repaying the full amount to victims.

Friedberg suggested Amy Lyon should title he was also a dupe of the dirt because “otherwise it’s not sledding to fly.” Friedberg also said he wanted to catch the 20 zillion liability “down to five.”

“I did read this money and I’m non trying to micturate it right, Dan, so we gotta capture that come out of the path right on away, tangible quick,” Hamilton said.

No Justice

Hamilton and others involved inward the UB scandal escaped criminal prosecution because of jurisdictional issues, and Friedberg was never disbarred.

Members of its sis site, Absolute Poker, were indicted past the US Department of Justice in 2011 on charges of bank hoax and money laundering.

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