Exchange News- Stephanie worked as both the enforcement director and the deputy director at the SEC.
- Former FTX CEO SBF will testify before Congress on December 13.
Former Alameda Research CEO Caroline Ellison has engaged a former official of the Securities and Exchange Commission (SEC) and law firm WilmerHale to defend her in connection with the continuing investigation into the fatal demise of the cryptocurrency exchange FTX and its trading business Alameda Research.
While at the SEC, Stephanie Avakian worked as both the enforcement director and the deputy director for a period of four years until accepting a position in the Washington, DC office of WilmerHale in 2020.
Allegations of Billion of Dollars Siphoned
Together with Steve Peikin, who is presently representing FTX in its bankruptcy proceedings, she served as a director. The regulatory agency ramped up its enforcement efforts in the crypto sector when they were in power.
FTX’s bankruptcy team, Congress, regulators, and Manhattan prosecutors are looking into allegations that billions of dollars in customer funds deposited at the exchange were ultimately traded by Alameda, a Hong Kong-based sister trading firm of the now-bankrupt FTX.
Ripple Labs, a blockchain firm, had its founders indicted of raising $1.3 billion via the illegal sale of unregistered securities backed by digital assets, which Stephanie had previously examined. After the SEC case in 2020, the question of whether crypto assets may be considered securities is still open.
Stephanie oversaw enforcement proceedings brought against GE, Robinhood Markets, and Elon Musk, in addition to the cryptocurrency industry. Moreover, as per reports, Ellison has been silent, which supports the theory that she is now in negotiations with the appropriate authorities to reach a cooperation arrangement. Moreover, Former FTX CEO SBF will testify before Congress on December 13.
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Source: https://thenewscrypto.com/alameda-research-ex-ceo-engages-former-sec-official-as-lawyer/