The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) indicted former Alameda Research CEO Caroline Ellison and former FTX co-founder Gary Wang with new charges. of fraud.
The new charges of the SECOND Y CFTC come when the couple plead guilty to Federal Fraud Charges Filed by the US Department of Justice (DOJ) earlier on December 22.
The SEC claims that Ellison and Wang were indicted for their role in the "multi-year scheme to defraud equity investors in FTX," and the SEC is also investigating whether other securities laws were violated.
The SEC alleges that Ellison, under the direction of former FTX CEO Sam Bankman-Fried, furthered the scheme by manipulating the price of the FTX token (FTT), which is described as a cryptosecurity token in the document. Said manipulation was carried out through the "purchase of large quantities on the open market to prop up its price", which took effect between 2019 and 2022.
As for the CFTC's charges, amendments were made to its December 13 fraud filing against Samuel Bankman-Fried, FTX Trading, and Alameda Research to now list Ellison and Wang as named defendants.
The amended lawsuit now charges Ellison with "fraud and material misrepresentations in connection with the commodity sale of digital assets in interstate commerce." As for Wang, the former FTX executive has been charged with "fraud in connection with the commodity sale of digital assets in interstate commerce."
As for the conduct involved that led to the charges, both the SEC and CFTC allege that Wang created the FTX software code that allowed Alameda to divert funds from FTX clients, which then allowed Ellison to misappropriate them. those funds for Alameda's business activities.
Related: SBF signs extradition papers, ready to face charges in the US again.
Former FTX CEO Sam Bankman-Fried has also reportedly landed in the US after being extradited from the Bahamas on fraud charges brought by the US government. accusation against SBF it is signed by the United States Attorney for the Southern District of New York, Damian Williams, and contains eight counts.
SBF faces charges from the Justice Department, along with the SEC and CFTC, for defrauding investors and lenders. Royal Bahamas Police ex-crypto billionaire arrested on December 12, and his initial application for bail was denied in a Bahamian court.
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