A former top crypto regulator at the US Securities and Exchange Commission (SEC) will represent Caroline Ellison, former CEO of Alameda Research, in an ongoing federal investigation, according to to a Bloomberg report on Dec. 10.
Caroline will be represented by Stephanie Avakian and a team of WilmerHale attorneys. Avakain is currently chair of the law firm's Securities and Financial Services department. At the SEC, where she was head of the Enforcement Division and responsible for expanding oversight of cryptocurrencies, bringing cases against Robinhood and Ripple Lab.
According to to the law firm's website, "Ms. Avakian supervised the Division's approximately 1,400 professionals and staff. During her four years at the helm of the Division, the SEC initiated more than 3,000 enforcement actions, obtained judgments and warrants for more than $17 billion in penalties and restitution, and returned approximately $3.6 billion to injured investors."
His profile on the law firm's website also noted that under the "direction of Ms. Avakian a wide range of issues were addressed, including insider trading, financial fraud and disclosure violations, audit issues and accounting, market structure, asset management, and the Foreign Corrupt Practices Act". She also led the Compliance Division to address novel issues at the forefront of today's markets, such as initial coin offerings, digital assets, and cybersecurity."
Related: FTX Was 'Fastest' Corporate Failure In US History: Trustee Calls For Investigation
There have been several investigations and at least seven class action lawsuits. filed against FTX Group and its bosses, Cointelegraph reported. Prosecutors from the United States Attorney's Office for the New York Borough of Manhattan and the California Department of Financial Innovation and Protection are Investigating Bankrupt Crypto Exchange and its subsidiaries.
Federal prosecutors also began investigating whether Sam Bankman-Fried, the former CEO of FTX, was behind the collapse of the Terra ecosystem. As part of a broader investigation into FTX's own collapse, prosecutors are investigating whether Bankman-Fried empire intentionally caused a flood of โsellโ orders in the Terra TerraUSD Classic (USTC) algorithmic stablecoin. According to According to a report in The New York Times, most of the USTC's sell orders came from Alameda Research.
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