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Uncategorized

SEC Identifies The FTX Exchange Token As Security

December 22, 2022 - Around 2 mins mins to read

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.
SEC Identifies The FTX Exchange Token As Security

“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

Alameda Research

ftx exchange

FTX Exchange Token

SEC

Securities and Exchange Commission

Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
Uncategorized

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.
SEC Identifies The FTX Exchange Token As Security

“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