Former Executives At FTX And Alameda Hit With More Fraud Charges
According to reports, the US SEC (Securities and Exchange Commission) and the CFTC (Commodities Futures Trading Commission) have filed new charges against two former FTX executives. They are Caroline Ellison, the CEO of Alameda Research, and Gary Wang, a former co-founder of FTX.
SEC And CFTC Level New Charges Against Ellison And Wang
On December 22nd, both Ellison and Wang pleaded guilty to fraud charges leveled against them. Reports even stated that the CEO of Alameda took a plea deal to avoid 110 years in jail.
Meanwhile, the new charges by the SEC allege that both executives took part in a fraudulent scheme to scam equity investors in the now-bankrupt FTX exchange. Additionally, the regulator is assessing whether both individuals broke more securities laws in the country.
Furthermore, SEC argued that Ellison’s action under Bankman-Fried’s directives enhanced the fraudulent scheme. Ellison reportedly manipulated the price of FTT, FTX’s token.
It is worth noting that SEC called the FTT token a crypto security. This could put both individuals, including FTX, in more trouble. The said manipulation took place between 2019 to 2022. The suspects bought large quantities of FTT tokens to cause a false price increase in the market.
On the other hand, the commodities regulator, CFTC, amended its December 13th charges against Bankman-Fried, Alameda Research, and FTX Trading. The new charges now include Wang and Ellison as defendants.
Bankman-Fried Lands In The US For Trial
Additionally, the modified complaint accuses Ellison of taking part in material misrepresentations and fraud concerning the sales of crypto commodities. The commodities regulator also accused Wang of fraud concerning the sales of crypto commodities in interstates.
Surprisingly, both regulators believe that Wang developed a code for FTX’s software. This allowed Alameda to withdraw users” finds from FTX. Ellison then misused the funds for trading on Alameda.
Meanwhile, recent reports reveal that Sam Bankman-Fried, the ex-CEO of FTX, has stepped foot in the United States. This came after the crypto entrepreneur signed extradition papers to move him out of the Bahamas.
Regulators have leveled an eight-count charge against Bankman-Fried, which could land him in jail for several years. The CFTC, SEC, and US Department of Justice are investigating Bankman-Fried for allegedly defrauding lenders and investors.
The Royal Bahamas Police first apprehended the crypto entrepreneur on December 12th after the FTX crisis, which shook the entire crypto industry. Even though Sam Bankman-Fried applied for bail in the Bahamas, a Bahamian court denied his application.
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