Quoting from the article you linked about the involvement of Daniel Friedberg, FTX’s Chief Regulatory Officer, in a previous scandal:
In 2008, online poker site Ultimate Bet (UB) publicly confirmed rumors that certain individuals had utilized a little-known feature of the site’s software to view players’ hole cards during hands. This so-called ‘god mode’ allowed a number of ‘super users’ to cheat opponents out of tens of millions in poker winnings. The site’s operators begrudgingly paid out a few million to the loudest complainers and folded the site’s operations into a sister site (which was dealing with its own scandals).
In 2013, an audio recording surfaced that made mincemeat of UB’s original version of events. The recording of an early 2008 meeting with the principal cheater (Russ Hamilton) features Daniel S. Friedberg actively conspiring with the other principals in attendance to (a) publicly obfuscate the source of the cheating, (b) minimize the amount of restitution made to players, and (c) force shareholders to shoulder most of the bill.
On the tape, Daniel S. Friedberg tells Hamilton that he doesn’t want news of the cheating scandal to get out, but if it must, the “ideal thing” would be for the public to be told that a “former consultant to the company, uh, took advantage of a server flaw by hacking into the [software] client.” Friedberg advises Hamilton to publicly claim that he was among the victims of this cheating, “otherwise [the cover story’s] not going to fly.”
Regarding how many millions the site would have to cough up—both in returns to players and regulatory penalties—Friedberg says “if we could get it down to five, I’d be happy.” This is despite Friedberg knowing the real sum owed was many multiples of that number. Friedberg later says that achieving this $5 million target is possible, “depending how creative we get.”
Friedberg also emphasizes the need to shift responsibility for the payout to Excapsa, the holding company that owned UB’s software during the period in which some of the cheating took place. Friedberg discusses naming an Excapsa employee as having prior knowledge of the cheating, because “in order to get to Excapsa’s money legally you almost have to show fraud.”
Quoting from the article you linked about the involvement of Daniel Friedberg, FTX’s Chief Regulatory Officer, in a previous scandal: