The U.S. Securities and Exchange Commission (SEC) filed a complaint against FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison alleging that the FTT token traded by FTX was sold as an investment contract. For their actions at FTX and Alameda, the two are also being charged by the Justice Department and Commodity Futures Trading Commission (CFTC). The lawsuit emphasized that FTX would use the profits from the token sale to fund the development, promotion, maintenance, and expansion of FTX while highlighting that FTT is an “investment” with the potential for profit.
Gary Wang, a co-founder of FTX, and Caroline Ellison, a co-CEO of Alameda Research, have pleaded guilty to federal charges. Ellison pleaded to two charges of wire fraud, while Wang pleaded to conspire to commit the crime. FTX’s self-issued token, as part of a more significant attempt to increase Alameda Research’s available collateral for lending. The allegations were announced the same evening that former FTX CEO Sam Bankman-Fried was traveling from the Bahamas to New York. According to the agency, Ellison and Wang are both supporting the Securities Exchange and Commission (SEC)’s continuing investigation. Numerous loans from significant cryptocurrency businesses, such as Voyager Digital and BlockFi Lending, who have now sought bankruptcy prSBF otection, were connected to Alameda Research. According to the SEC, Bankman-Fried is accused of scamming FTX customers, and Ellison and Wang are also accused of helping him in their respective positions at Alameda and FTX. The SEC claims Wang built a software backdoor into the FTX platform that allowed Alameda to use consumer money for its own transactions.
Sam Bankman-Fried (SBF), will be returned to the United States on Wednesday, according to Ryan Pinder, the attorney general of The Bahamas. The temporary arrest and subsequent written authorization by SBF to be extradited without formal extradition proceedings meet the requirements of the Treaty and our country’s Extradition Act, according to the Bahamas. “In anticipation of SBF’s extradition under a mutual extradition treaty, the US asked that a provisional arrest order be issued for him. SBF later abandoned his right to challenge extradition to the United States after the arrest “According to another statement from The Bahamas.