Caroline Ellison Of Alameda And Gary Wang Of FTX Have Been Charged With Additional Fraud

Key Points:

• Caroline Ellison, as well as the former co-founder of FTX, Gary Wang, have been charged with new fraud by the United States Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC)
• SEC and CFTC also claim that Wang wrote the software code for FTX that allowed Alameda to steal customer cash from FTX and then give those funds to Ellison so he could use them for Alameda’s trading activities

The former CEO of Alameda Research, Caroline Ellison, as well as the former co-founder of FTX, Gary Wang, have been charged with new fraud by the United States Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC).

The U.S. Department of Justice (DOJ) previously on December 22 brought federal fraud charges against the two individuals, and those allegations have already been resolved with the pair pleading guilty.

Ellison and Wang, according to the SEC, were charged for their involvement in the “multiyear plan to deceive equity investors in FTX,” and the SEC is also looking into whether additional securities laws were broken.

The United States Securities and Exchange Commission (SEC) and SEC believe that Ellison advanced the scam by manipulating the price of FTX, which is referred to as a crypto security token in the paper, under the instruction of former FTX CEO Sam Bankman-Fried. Between 2019 and 2022, the aforementioned manipulation was carried out by “buying substantial quantities on the open market to push up its price.”

Regarding the CFTC’s allegations, Ellison and Wang have been added as listed defendants to its Dec. 13 fraud filing against Samuel Bankman-Fried, FTX Trading, and Alameda Research.

Ellison is now accused of “fraud and substantial misrepresentations in connection with the sale of digital asset commodities in interstate commerce,” according to the new complaint. Wang, a former executive at FTX, is accused of “fraud in connection with the selling of digital asset commodities in interstate commerce.”

SEC and CFTC also claim that Wang wrote the software code for FTX

The SEC and CFTC also claim that Wang wrote the software code for FTX that allowed Alameda to steal customer cash from FTX and then give those funds to Ellison so he could use them for Alameda’s trading activities. This activity is what allegedly led to the charges.

Sam Bankman-Fried, the former CEO of FTX, is also said to have arrived in the United States after being extradited from The Bahamas on suspicion of fraud on the part of the American government. The Southern District of New York’s U.S. Attorney, Damian Williams, has signed the eight-count indictment against SBF.

The Justice Department, SEC, and CFTC are bringing charges against SBF for misleading lenders and investors. The ex-crypto billionaire was detained by Royal Bahamas police on December 12, and a Bahamian court rejected his initial bail request.

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