Alameda's Caroline Ellison and FTX's Gary Wang hit with additional fraud charges

The United States Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) person deed erstwhile Alameda Research CEO Caroline Ellison and erstwhile FTX co-founder Gary Wang with caller fraud charges.

The caller charges from the SEC and CFTC travel arsenic the brace plead blameworthy to federal fraud charges filed by the U.S. Department of Justice (DOJ) earlier connected Dec. 22.

SEC states that Ellison and Wang were charged for their relation successful the "multiyear strategy to defraud equity investors successful FTX,” with the SEC besides investigating whether different securities laws were violated arsenic well.

The SEC alleges that Ellison, nether the absorption of erstwhile FTX CEO Sam Bankman-Fried, furthered the strategy by manipulating the terms of FTX Token (FTT), which is described arsenic a crypto information token successful the document. The said manipulation was conducted by “purchasing ample quantities connected the unfastened marketplace to prop up its price,” which took effect betwixt 2019 and 2022.

As for the CFTC’s charges, amendments were made to its Dec. 13 fraud filing against Samuel Bankman-Fried, FTX Trading, and Alameda Research to present see Ellison and Wang arsenic named defendants.

Former FTX CEO Sam Bankman-Fried, handcuffed, connected his mode to airdrome for extradition. Source: Royal Bahamas Police

The amended ailment present lays charges against Ellison for “fraud and worldly misrepresentations successful transportation with the merchantability of integer plus commodities successful interstate commerce.” As for Wang, the erstwhile FTX exec has been charged with “fraud successful transportation with the merchantability of integer plus commodities successful interstate commerce.”

As for the behaviour progressive that led to the charges, some the SEC and CFTC allege that Wang created FTX’s bundle codification that enabled Alameda to divert lawsuit funds from FTX, which past allowed Ellison to misappropriate those funds for Alameda’s trading activities.

Related: SBF signs extradition papers, acceptable to instrumentality to look charges successful the US

Former FTX CEO Sam Bankman-Fried has besides reportedly landed successful the U.S. aft being extradited from The Bahamas for fraud charges laid by the U.S. Government. The indictment against SBF is signed by the U.S. Attorney for the Southern District of New York, Damian Williams, and contains 8 counts.

SBF is facing charges from the Justice Department, on with SEC and CFTC, for defrauding investors and lenders. Royal Bahamas constabulary arrested the erstwhile crypto billionaire on Dec. 12, and his archetypal exertion for bail was denied successful a Bahamian court.