SEC Identifies The FTX Exchange Token As Security
Key Points:
- The U.S. Securities and Exchange Commission said in a complaint filed late Wednesday that FTX’s exchange token FTT was promoted as an investment contract and is a “security”.
- Ellison and Wang have both admitted guilt to the many accusations that were made against them and do not dispute the SEC’s claims
The U.S. Securities and Exchange Commission said in a complaint filed late Wednesday that FTX exchange token FTT was promoted as an investment contract and is a “security,” a move that is certain to have a significant effect on the sector.
“If demand for trading on the FTX platform increased, demand for the FTT token could increase, such that any price increase in FTT would benefit holders of FTT equally and in direct proportion to their FTT holdings,” the SEC wrote in its complaint. “The large allocation of tokens to FTX incentivized the FTX management team to take steps to attract more users onto the trading platform and, therefore, increase demand for, and increase the trading price of, the FTT token.”
The assertion was made by the SEC in a complaint brought against Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, the co-founder of FTX.
According to a press release from the SEC, Ellison and Wang have both admitted guilt to the many accusations that were made against them and do not dispute the SEC’s claims.
In addition, the two are being prosecuted by the Justice Department and the Commodity Futures Trading Commission (CFTC) over their actions at FTX and Alameda, respectively.
According to the SEC, “FTT investors had a reasonable expectation of benefiting from FTX’s efforts to deploy investor monies to develop a use for FTT and provide demand and value to their common venture.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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SEC Identifies The FTX Exchange Token As Security
Key Points:
- The U.S. Securities and Exchange Commission said in a complaint filed late Wednesday that FTX’s exchange token FTT was promoted as an investment contract and is a “security”.
- Ellison and Wang have both admitted guilt to the many accusations that were made against them and do not dispute the SEC’s claims
The U.S. Securities and Exchange Commission said in a complaint filed late Wednesday that FTX exchange token FTT was promoted as an investment contract and is a “security,” a move that is certain to have a significant effect on the sector.
“If demand for trading on the FTX platform increased, demand for the FTT token could increase, such that any price increase in FTT would benefit holders of FTT equally and in direct proportion to their FTT holdings,” the SEC wrote in its complaint. “The large allocation of tokens to FTX incentivized the FTX management team to take steps to attract more users onto the trading platform and, therefore, increase demand for, and increase the trading price of, the FTT token.”
The assertion was made by the SEC in a complaint brought against Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, the co-founder of FTX.
According to a press release from the SEC, Ellison and Wang have both admitted guilt to the many accusations that were made against them and do not dispute the SEC’s claims.
In addition, the two are being prosecuted by the Justice Department and the Commodity Futures Trading Commission (CFTC) over their actions at FTX and Alameda, respectively.
According to the SEC, “FTT investors had a reasonable expectation of benefiting from FTX’s efforts to deploy investor monies to develop a use for FTT and provide demand and value to their common venture.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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