Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A7011674717921177600
FTX-Alameda Former CEO Caroline Ellison and Former FTX CTO Plead Guilty to Similar Criminal Charges as FTX Founder SBF:
https://lnkd.in/gVEjTaHe
The U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission also sued Ellison and Wang, alleging they committed civil #securities and #commodities #fraud. Both agreed to settle the #SEC’s and #CFTC’s claims and to accept liability, with monetary penalties to be decided in the future, according to the #regulators: https://lnkd.in/gYhfycHM .
The SEC said Ellison, from 2019 to 2022, #manipulated the #price of #FTT, a #digitalasset that FTX issued at the direction of #SBF: The #price #manipulation allowed Alameda to #inflate the value of #FTT #coin #token that it held and used as #collateral for undisclosed #loans from FTX customers.
#SamBankmanFried on at least two occasions became worried about the price of FTT dropping and told Ellison to have Alameda buy FTT. #Binance, a rival #crypto #exchange, was also a large holder of #FTT #tokens; its November announcement to sell its FTT stake caused the price of the #token to plummet, although Ellison had offered publicly to buy Binance’s holdings of FTT at $22 each.
The SEC alleged that #FTT is a #security, giving the agency #authority to oversee how it was #traded. #FTX’s #profits from selling FTT to #investors helped fund the #exchange’s growth and development…
Though Ellison was CEO, Bankman-Fried owned 90% of Alameda and Wang owned the other 10%, all worked in #HongKong and #Bahamas, according to #bankruptcy court #filings.
Earlier, even when Ellison was co-CEO, SBF directed #investment and #operational #decisions, frequently communicated with Alameda employees and had full #access to Alameda’s #records and #databases, said SEC.
Wang wrote the #software #code that allowed Alameda to access FTX customers’ funds, according to the SEC.
We posted first: #Crypto #HouseOfCards Built on #FreeMoney-#CashIsTrash Coming Down: https://lnkd.in/gGy4bPTN
“Ms. Ellison and Mr. Wang played an active role in a scheme to #misuse FTX #customer #assets to prop up Alameda and to post collateral for #margin #trading,” #SEC #Chair #GaryGensler said. “When FTT and the rest of the #HouseOfCards collapsed, Mr. Bankman-Fried, Ms. Ellison, and Mr. Wang left investors holding the bag.”
In May, when digital assets plummeted amid the $40 billion crash of TerraUSD and #Luna and #crypto #lenders recalled #billions of #dollars in #loans from Alameda, SBF directed billions in FTX customer assets to Alameda so that the #trading shop could maintain its #lending relationships, the SEC said.
Mr. Wang and Ms. Ellison were aware of the #transfer of #funds and Ms. Ellison then used FTX customer’s assets to repay Alameda’s #debts…
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