The former crypto billionaire is facing charges from the Justice Department, along with the SEC and CFTC, for defrauding investors and lenders. Royal Bahamas police arrested him on Dec. 12, and his initial bail application was denied in a Bahamian court.
The United States Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) have added Former Alameda Research CEO Caroline Ellison and Former FTX Co-Founder Gary Wang to their lists of charges for fraud.
Earlier this month, the SEC and the CFTC announced new charges against the duo. This occurred as the duo pleaded guilty to federal charges earlier this month.
According to the SEC, Ellison and Wang were charged for their role in the “multiyear scheme to defraud equity investors in FTX,” and the SEC is also investigating whether other securities laws were violated.
According to the SEC, Ellison aided Sam Bankman-Fried in manipulating the FTX Token price by altering the trading volume in their exchange, FTX Exchange, which is charged with operating an unregistered securities exchange.
In its report, the SEC describes a security token as an. Between 2019 and 2022, “purchasing large quantities on the open market to prop up its price” was reported to be one of the methods of manipulation.
In addition to Samuel Bankman-Fried, FTX Trading, and Alameda Research, the CFTC’s fraud filing against Dec. 13 now includes Ellison and Wang as named defendants.
The complaint now claims Ellison duped investors by selling cryptocurrencies in interstate commerce. Wang, on the other hand, has been accused of fraud in connection with the sale of these same cryptocurrencies.
Both the SEC and CFTC charged that Wang wrote the software code that enabled Alameda to divert customer funds from FTX and then used them for his trading activities.
Sam Bankman-Fried, who used to be the CEO of FTX, has allegedly been extradited to the United States after being charged with fraud by the federal government. The U.S. Attorney for the Southern District of New York, Damian Williams, signed the indictment against SBF. It contains eight counts.
The ex-crypto billionaire is being charged by the Justice Department, the SEC and the CFTC, for defrauding investors and creditors. Royal Bahamas police apprehended the person on Dec. 12, and his bail request was denied in a Bahamian court.