Caroline Ellison from FTX involved in fraud case
2022.12.22 07:46
Caroline Ellison from FTX involved in fraud case
Budrigannews.com – Both the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) of the United States have brought fresh fraud charges against former Alameda Research CEO Caroline Ellison and former FTX co-founder Gary Wang.
After pleading guilty to federal fraud charges brought by the United States Department of Justice (DOJ) earlier on December 22, the SEC and CFTC now face additional charges.
According to the SEC, Ellison and Wang were charged with participating in the “multiyear scheme to defraud equity investors in FTX,” and the SEC is also looking into whether or not any other securities laws were broken.
According to the SEC, Ellison manipulated the price of FTX Token (FTT), which is referred to in the document as a crypto security token, under the direction of former FTX CEO Sam Bankman-Fried. The aforementioned manipulation took place between the years 2019 and 2022 and consisted of “purchasing large quantities on the open market to prop up its price.”
The CFTC’s charges against Samuel Bankman-Fried, FTX Trading, and Alameda Research were amended on December 13 to include Ellison and Wang as named defendants.
On his way to the airport for extradition, handcuffed former FTX CEO Sam Bankman-Fried. Source: Royal Bahamas Police now accuse Ellison of “fraud and material misrepresentations in connection with the sale of digital asset commodities in interstate commerce” in the amended complaint. Wang has been accused of “fraud in connection with the sale of digital asset commodities in interstate commerce,” according to the charges.
The SEC and CFTC allege that Wang created the software code for FTX that allowed Alameda to divert customer funds from FTX, allowing Ellison to misappropriate those funds for Alameda’s trading activities. This is the conduct that led to the charges.
More How Caroline Ellison managed to avoid 100-year prison sentence
After being extradited from the Bahamas on fraud charges brought by the U.S. government, former FTX CEO Sam Bankman-Fried is said to have also arrived in the United States. The U.S. Attorney for the Southern District of New York, Damian Williams, has signed the eight-count indictment against SBF.
Along with the SEC and CFTC, the Justice Department has filed charges against SBF for defrauding investors and lenders. On December 12, the former crypto billionaire was detained by Royal Bahamas police, and a Bahamian court denied his initial request for bail.
