FLIPPED: FTX Co-Founder and Alameda Research’s Ellison Pleaded Guilty to Federal Fraud Charges
Posted on 12/22/2022
Gary Wang, a Co-Founder of FTX, and Alameda Research’s Caroline Ellison entered the guilty pleas in exchange for easier sentences at the Southern District of New York Court. Caroline Ellison once dated Sam Bankman-Fried. Gary Wang is FTX’s former chief technology officer. Bankman-Fried faces eight charges. Bankman-Fried is in FBI custody after being extradited from the Bahamas.
SEC
The U.S. Securities and Exchange Commission (SEC) also charged Ellison and Wang for their roles in a multi-year scheme to defraud equity investors of FTX. The SEC alleges that Ellison manipulated the price of an FTX-issued exchange crypto security token called FTT. The SEC contends that FTT functioned as collateral for undisclosed loans by FTX of its customers’ assets to Alameda Research. The complaint makes several other allegations against Ellison and Wang.
