Alameda’s Caroline Ellison and FTX’s Gary Wang have faced more cheating allegations
Alameda’s Caroline Ellison and FTX’s Gary Wang have faced more cheating allegations
#Alamedas #Caroline #Ellison #FTXs #Gary #Wang #faced #cheating #allegations Welcome to InNewCL, here is the new story we have for you today:
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The United States Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) have issued new fraud allegations to former Alameda Research CEO Caroline Ellison and former FTX co-founder Gary Wang.
The new indictments from the SEC and CFTC come as the couple plead guilty to federal fraud charges filed by the US Department of Justice (DOJ) on Dec. 22.
The SEC states that Ellison and Wang have been indicted for their role in the “multi-year plan to defraud stock investors in FTX,” while the SEC is also investigating whether other securities laws were violated as well.
The SEC alleges that Ellison, led by former FTX CEO Sam Bankman-Fried, promoted the scheme by manipulating the price of FTX Token (FTT), which the document describes as a crypto security token. The manipulation in question was carried out by “buying large quantities on the open market to prop up the price,” which came into effect between 2019 and 2022.
As for the CFTC’s indictments, amendments were made to the December 13 fraud complaint against Samuel Bankman-Fried, FTX Trading and Alameda Research to now include Ellison and Wang as named defendants.
Former FTX CEO Sam Bankman-Fried is handcuffed en route to the delivery airport. Source: Royal Bahamas Police
The amended complaint now charges Ellison with “fraud and material misrepresentation in connection with the sale of digital asset commodities in interstate commerce.” As for Wang, the former FTX executive was charged with “fraud related to the sale of digital asset commodities in interstate commerce.”
Regarding the conduct that led to the indictments, both the SEC and CFTC allege that Wang created FTX’s software code that allowed Alameda to divert client funds from FTX, which then enabled Ellison to use those funds for the misappropriate commercial activities of Alameda.
Related: SBF signs extradition papers to face re-trial in US
Former FTX CEO Sam Bankman-Fried has also reportedly landed in the US after being extradited from the Bahamas over allegations of US government fraud. The indictment against SBF is signed by US Attorney for the Southern District of New York Damian Williams and contains eight counts.
SBF is indicted by the Justice Department along with the SEC and CFTC for defrauding investors and lenders. Royal Bahamas police arrested the former crypto billionaire on Dec. 12, and his initial bail request was denied by a Bahamian court.
