UNITED STATES: According to a recently released deal with prosecutors, Caroline Ellison, the former CEO of the FTX sister business Alameda Research has accepted to enter a guilty plea to seven counts of wire fraud, securities fraud, and money laundering.
Ex-CEO of FTX sister business Alameda Research has accepted to enter a guilty plea
The maximum sentence for all of the offences combined is 110 years in prison. However, due to Ellison’s assistance with the investigation, she is most likely to receive a significantly reduced sentence.
The Commodity Futures Trading Commission submitted an additional complaint describing the case against Ellison and the co-founder of Alameda/FTX, Gary Wang, in addition to the previously filed allegations against Sam Bankman-Fried, the founder of the FTX group, along with the recently revealed plea agreement.
In its updated complaint, the CFTC accuses Ellison of fraud and substantial misrepresentations in connection with the sale of commodities backed by digital assets in interstate commerce and Wang of fraud in the same transaction.
According to the commission, Wang made a point of including features in the code of the cryptocurrency exchange FTX that allow Alameda to maintain a “basically unlimited line of credit,” on the system.
In addition, it is said that Ellison gave Alameda instructions to utilise “billions of dollars of FTX money, including FTX customer funds, to trade on other digital asset exchanges and to support a variety of high-risk digital asset industry ventures”, according to the lawsuit.
Ellison’s bond was set at $250,000 in contrast to Bankman-Fried, who was released on a $250 million bail and required to stay in his parents’ Palo Alto home. She will not be allowed to leave the United States’ continental territory.
With the exception of potential tax offenses, the plea agreement shields her from additional criminal charges, but it excludes other potential civil litigation from other authorities.
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