Howard Lederer Reveals Details of Full Tilt Poker's 'Black Friday' Scandal

Howard Lederer, a key figure in the Full Tilt Poker scandal, known as 'Black Friday,' has revealed details about the events leading up to the shutdown. On August 31, 2010, Ray Bitar submitted false data to the Alderney Gambling Control Commission regarding the funds available to Full Tilt Poker. The documents approved by Bitar showed $370 million in total, with $322 million on players' accounts, but an internal report indicated only $122 million, $200 million less than what the company owed players.

Lederer stated that he was not aware of the internal report showing the discrepancy in funds. He mentioned that he and Chris Ferguson were informed about the nine-figure debt on April 7, 2011, during a meeting in Dublin. Bitar and Nelson Bunker decided to credit players' accounts without actual funds, leading to a nine-figure debt. Lederer and Ferguson were shocked by the revelation but did not immediately consider firing Bitar.

On April 15, 2011, the U.S. Department of Justice shut down Full Tilt Poker, an event known as 'Black Friday.' Lederer was in Dubai with Hakim Siddiqui when he learned about the shutdown and the subsequent legal actions. Lederer and other top executives held a teleconference to discuss the immediate steps, including blocking U.S. players and issuing a press release. The press release stated that players' funds were safe, which Lederer later realized was not true.