Caroline Ellison, the former CEO of Alameda Research, has agreed to plead guilty to seven felonies, including charges of wire fraud, securities fraud and money laundering. Meanwhile, the CFTC has claimed that it “gambling Alameda customer money.”
The 28-year-old Newton native, who is also Bankman-Fried’s ex-girlfriend, was charged with seven counts. In two cases, he was charged with defrauding clients of FTX and conspiring to do so. The other two accused him of committing wire fraud on Alameda Research’s lenders and of conspiring to do so.
Count five charged them with conspiracy to commit commodities fraud, and six alleged conspiracy to commit securities fraud on equity investors of FTX. The seventh count charged him with conspiracy to commit money laundering.
According to a new unsealed agreement with prosecutors, Ellison has Agreed For those convicted of all these crimes, the combined maximum sentence is 110 years. However, since she is cooperating with the authorities, she is likely to receive a substantially reduced sentence.
Meanwhile, the Commodity Futures Trading Commission (CFTC) has filed an amended complaint against Ellison and FTX co-founder Gary Wang detailing the matter. The agency charged Ellison with fraud and material misrepresentation in connection with the sale of digital asset items in interstate commerce.
The CFTC further noted that Ellison used FTX client funds, which he obtained through an unlimited line of credit, “to fund a variety of high-risk digital asset industry investments.” CFTC Chairman Rostin Behnum said:
“With today’s charges, we continue to move aggressively to hold accountable all individuals who committed fraud and protect customers from additional losses and damages. In the absence of a comprehensive regulatory framework on digital assets, the CFTC is committed to protecting the integrity of commodity markets. Will use all its existing power and authority to ensure that all market participants are protected.
As reported, the disgraced founder of crypto exchange FTX, Sam Bankman-Fried, has since been released from prison on bail. posting a $250 million bond in a New York court.
On December 21, the United States Attorney’s Office for the Southern District of New York revealed A plea deal for Ellison that cleared him of all major charges. At that time, Ellison’s bail was set at $250,000.
Notably, the guilty pleas were announced after it was confirmed that the SBF was being extradited to the US. Previously, US prosecutors had not publicly disclosed whether Ellison and Wang were facing possible criminal charges or promised to cooperate with investigators.
Bitcoin Crypto Related Post