Two of the former allies of Sam Bankman-Fried (SBF) countered him. As the former Alameda Research CEO, Caroline Ellison and the Co-Founder of FTX, Gary Wang, pleaded guilty to criminal charges. These two are also facing civil charges from the Securities and Exchange Commission (SEC).
Official Statement by The U.S. Attorney
The following information is sourced from a recorded statement of the U.S. Attorney for the Southern District of New York, Damian Williams. Mr. Williams said that Ms. Ellison and Mr. Wang are cooperating with prosecutors. Additionally the U.S. Attorney is also anticipated to bring more charges against the other individuals.
Meanwhile, he also urged others involved in the collapsed crypto firm, FTX, to come forward before the accused charges might be brought as warning, “our patience is not eternal.” “We continue to work around the clock, and we are far from done,” Mr. Williams said. However, SBF is now in FBI custody as per the U.S. attorney statement.
The Allegations by SEC and CFTC
More charges are also filed against Ms. Ellison and Mr. Wang by the Security and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The allegations mentioned the two as defrauded investors.
However both of them are cooperating with the whole investigations with both agencies noting that Ms. Ellison and Mr. Wang settled. If the settlement is approved by a judge, both will give up money they made from their respective firms. Also be banned from the “issuance, purchase, offer, or sale of any securities,” besides for their own personal investment accounts.
What Did The SEC Chair Announce?
The SEC Chair, Gary Gensler, said in a statement announcing the enforcement action and settlement that “As part of their deception, we allege that Caroline Ellison and Sam Bankman-Fried schemed to manipulate the price of FTT, an exchange crypto security token that was integral to FTX, to prop up the value of their house of cards.”
“We further allege that 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,” he continued.
The SEC Chair additionally said that SBF, Ms. Ellison, and Mr. Wang, “left investors holding the bag,” after FTT’s collapse.
“Until crypto platforms comply with time-tested securities laws, risks to investors will persist. It remains a priority of the SEC to use all of our available tools to bring the industry into compliance,” as stated by the SEC chair.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/22/the-u-s-attorney-sec-and-cftc-on-sbf-and-his-former-allies/