📚 Alameda's Caroline Ellison, FTX's Gary Wang Plead Guilty To DOJ Fraud Charges

Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to charges tied to FTX's collapse, U.S. Attorney Damian Williams announced Wednesday night. CoinDesk reports: The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) also announced (PDF) charges against the two, saying Ellison manipulated the price of FTT, an exchange token issued by FTX, at exchange founder Sam Bankman-Fried's direction. The duo are cooperating with investigators, Williams announced. The U.S. Attorney for the Southern District of New York (SDNY) did not specify what they were being charged with. In a statement, SEC Deputy Enforcement Director Sanjay Wadhwa said the three "were active participants in a scheme to conceal material information from FTX investors, including through the efforts of Mr. Bankman-Fried and Ms. Ellison to artificially prop up the value of FTT, which served as collateral for undisclosed loans that Alameda took out from FTX pursuant to its undisclosed, and virtually unlimited, line of credit." Highlighted in the complaint are multiple times when Bankman-Fried made public statements, and provided investors with documentation via audited financial statements, that Alameda received no preferential treatment from FTX. Ellison was a close confidant of Bankman-Fried's, and has been targeted by prosecutors for her role in manipulating FTX's exchange token FTT, which Alameda had used as collateral for investments. In early December Ellison, who is thought to reside in Hong Kong or Nassau, was spotted in Manhattan at a coffee shop leading many to suspect she was working with authorities. Shortly after, Ellison retained the law firm WilmerHale to represent herself. WilmerHale counts Stephanie Avakian, a former director of the SEC's Division of Enforcement, as one of its top attorneys. Further reading: FTX Founder Bankman-Fried To Be Released on a $250 Million Bond Package While He Awaits Trial

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