[2022-12-21] SEC Charges Caroline Ellison and Gary Wang with Defrauding Investor

[suzanne5223]

SEC Charges Caroline Ellison and Gary Wang with Defrauding Investors in Crypto Asset Trading Platform FTX

The same Caroline Ellison ^{who was said to be the former girlfriend of SBF}, who blew the whistle that the $10b of assets aren’t reflected there account has been charged by the SEC along with Gary Wang the former Chief Technology Officer of FTX Trading Ltd. (FTX), for their roles in a multiyear scheme to defraud equity investors in FTX, the crypto trading platform co-founded by Samuel Bankman-Fried and Wang. Investigations into other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.

According to the SEC’s complaint, between 2019 and 2022, Ellison, at the direction of Bankman-Fried, furthered the scheme by manipulating the price of FTT, an FTX-issued exchange crypto security token, by purchasing large quantities on the open market to prop up its price. FTT served as collateral for undisclosed loans by FTX of its customers’ assets to Alameda, a crypto hedge fund owned by Wang and Bankman-Fried and run by Ellison. The complaint alleges that, by manipulating the price of FTT, Bankman-Fried and Ellison caused the valuation of Alameda’s FTT holdings to be inflated, which in turn caused the value of collateral on Alameda’s balance sheet to be overstated, and misled investors about FTX’s risk exposure.

In addition, the complaint alleges that, from at least May 2019 until November 2022, Bankman-Fried raised billions of dollars from investors by falsely touting FTX as a safe crypto asset trading platform with sophisticated risk mitigation measures to protect customer assets and by telling investors that Alameda was just another customer with no special privileges; meanwhile, Bankman-Fried and Wang improperly diverted FTX customer assets to Alameda. The complaint alleges that Ellison and Wang knew or should have known that such statements were false and misleading.



Edit: Alameda Research ex-CEO Caroline Ellison and Gary Wang plead guilty to involvement in frauds causing FTX's collapse.

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[bbc.reporter]

Edit: Alameda Research ex-CEO Caroline Ellison and Gary Wang plead guilty to involvement in frauds causing FTX's collapse.

This implies that Caroline and Gary Wang might be in the process of creating an agreement with the SEC to tell everything they know in exchange for a lower sentence. The person who does not make the agreement will be the scapegoat and presently, this appears to be Sam Bankrupt-Fried.

In any case, Sam does not appear that he wants to plead guilty and tell everything he knows. Might there be something really behind FTX? Are the speculations on the Ukraine moneylaundering operation and Democratic party connection real?

[suzanne5223]

Edit: Alameda Research ex-CEO Caroline Ellison and Gary Wang plead guilty to involvement in frauds causing FTX's collapse.

This implies that Caroline and Gary Wang might be in the process of creating an agreement with the SEC to tell everything they know in exchange for a lower sentence. The person who does not make the agreement will be the scapegoat and presently, this appears to be Sam Bankrupt-Fried.

In any case, Sam does not appear that he wants to plead guilty and tell everything he knows. Might there be something really behind FTX? Are the speculations on the Ukraine moneylaundering operation and Democratic party connection real?

I don't know Gary Wang but Caroline appears to be doing everything possible to have an agreement with the SEC by saying everything she knows about the issue. But Sam Bankman-Fried appears to believe in Mark Cohen his defense attorney capacity since he has once won a case against the SEC
About the Ukraine money laundering operation and Democratic involvement, I don't know if it's real and what I read is that it is a baseless theory.

[bbc.reporter]

Edit: Alameda Research ex-CEO Caroline Ellison and Gary Wang plead guilty to involvement in frauds causing FTX's collapse.

This implies that Caroline and Gary Wang might be in the process of creating an agreement with the SEC to tell everything they know in exchange for a lower sentence. The person who does not make the agreement will be the scapegoat and presently, this appears to be Sam Bankrupt-Fried.

In any case, Sam does not appear that he wants to plead guilty and tell everything he knows. Might there be something really behind FTX? Are the speculations on the Ukraine moneylaundering operation and Democratic party connection real?

I don't know Gary Wang but Caroline appears to be doing everything possible to have an agreement with the SEC by saying everything she knows about the issue. But Sam Bankman-Fried appears to believe in Mark Cohen his defense attorney capacity since he has once won a case against the SEC
About the Ukraine money laundering operation and Democratic involvement, I don't know if it's real and what I read is that it is a baseless theory.

Caroline and Gary Wang will tell Gensler and his team everything they know and I speculate will also add lies to save themselves from imprisonment and leave everything on Sam Bankrupt-Fried's shoulders.

On the Ukraine moneylaundering-Democratic party connection, I agree that everything is presently just speculation, however, something similar can be said about FTX before they were exposed. If someone speculated that FTX is a ponzi scheme during 2021, everyone would say it is only fud and a baseless story.

If the baseless story is true, Sam on the other side will have no choice but hide everything he knows or else he might end similar to Jeffrey Epstein hehehe.

[macson]

Edit: Alameda Research ex-CEO Caroline Ellison and Gary Wang plead guilty to involvement in frauds causing FTX's collapse.

This implies that Caroline and Gary Wang might be in the process of creating an agreement with the SEC to tell everything they know in exchange for a lower sentence. The person who does not make the agreement will be the scapegoat and presently, this appears to be Sam Bankrupt-Fried.

In any case, Sam does not appear that he wants to plead guilty and tell everything he knows. Might there be something really behind FTX? Are the speculations on the Ukraine moneylaundering operation and Democratic party connection real?

the investigation into the case of FTX and its network of businesses is still ongoing and it looks like it will only end up with compensation money lol. there is a large force that backs up the SBF so until now the punishment for him has not yet been decided.  SBF - CE - G Wang is the executor and the brains behind them must be someone with great power.

[Kryptowerk]

Edit: Alameda Research ex-CEO Caroline Ellison and Gary Wang plead guilty to involvement in frauds causing FTX's collapse.

This implies that Caroline and Gary Wang might be in the process of creating an agreement with the SEC to tell everything they know in exchange for a lower sentence. The person who does not make the agreement will be the scapegoat and presently, this appears to be Sam Bankrupt-Fried.

In any case, Sam does not appear that he wants to plead guilty and tell everything he knows. Might there be something really behind FTX? Are the speculations on the Ukraine moneylaundering operation and Democratic party connection real?

I don't know Gary Wang but Caroline appears to be doing everything possible to have an agreement with the SEC by saying everything she knows about the issue. But Sam Bankman-Fried appears to believe in Mark Cohen his defense attorney capacity since he has once won a case against the SEC
About the Ukraine money laundering operation and Democratic involvement, I don't know if it's real and what I read is that it is a baseless theory.

I am actually suprised to see the name Gary Wang coming up again. All the info that was available on him seemed like he was some made-up character - no track history, no real photos, no nothing really to be found on this guy.
Yeah, I think it is just the "smart" thing to do in this situation: Trying to lower their sentences by giving up cruicial information. Focusing on one main-target, a public scapegoat so-to speak, and ofc it has to be SBF. This will quite likely leave some of the other mega-scammers involved running free. Good for them. 

[suzanne5223]

Caroline and Gary Wang will tell Gensler and his team everything they know and I speculate will also add lies to save themselves from imprisonment and leave everything on Sam Bankrupt-Fried's shoulders.

This is expected because things seem not to be going well between Caroline ^{(who is the former girlfriend of SBF and I have the impression that Caroline linked everything out of jealousy)}and SBF. I hope Mark Cohen does the right thing to save his client and SBF also helps himself.

On the Ukraine moneylaundering-Democratic party connection, I agree that everything is presently just speculation, however, something similar can be said about FTX before they were exposed. If someone speculated that FTX is a ponzi scheme during 2021, everyone would say it is only fud and a baseless story.

If the baseless story is true, Sam on the other side will have no choice but hide everything he knows or else he might end similar to Jeffrey Epstein hehehe.

I agreed with what you said here and from what I understand about this FTX issue a lot of people are involved. In the meantime, let's wait and see what will happen since the SEC has advised everyone involved to step out before they find them.

the investigation into the case of FTX and its network of businesses is still ongoing and it looks like it will only end up with compensation money lol. there is a large force that backs up the SBF so until now the punishment for him has not yet been decided.  SBF - CE - G Wang is the executor and the brains behind them must be someone with great power.

I am glad you noticed that there's a large force and also a powerful defense attorney involved in the SBF case and if care is not taken Caroline will be the only one to go to jail.

I am actually suprised to see the name Gary Wang coming up again. All the info that was available on him seemed like he was some made-up character - no track history, no real photos, no nothing really to be found on this guy.
Yeah, I think it is just the "smart" thing to do in this situation: Trying to lower their sentences by giving up cruicial information. Focusing on one main-target, a public scapegoat so-to speak, and ofc it has to be SBF. This will quite likely leave some of the other mega-scammers involved running free. Good for them. 

Gary Wang may be somehow invincible but he's not a superman and if SBF makes good use of his chances very well I don't see him as a scapegoat.

[stompix]

I am actually suprised to see the name Gary Wang coming up again. All the info that was available on him seemed like he was some made-up character - no track history, no real photos, no nothing really to be found on this guy.

Oh god, so the feds have arrested a fake guy?  
Just because he wasn't every day in the spotlights it doesn't mean he wasn't real, you can't really have articles every day about every damn cofounder on this planet, especially since the guy in charge is always in the spotlight! He was a google employee, he lived with this guy in the same condo for years, that's it! If I were to ask you who the f* Robyn Denholm is probably 99% will have no clue and you can barely find anything about her on the internet also. Go to every exchange and look for the number 3 or 4 in the ranks and probably there will be less info about than this Gary Wang.

I hope Mark Cohen does the right thing to save his client and SBF also helps himself.

Why would you want SBF to not be punished for what he has done?

[Kryptowerk]

I am actually suprised to see the name Gary Wang coming up again. All the info that was available on him seemed like he was some made-up character - no track history, no real photos, no nothing really to be found on this guy.

Oh god, so the feds have arrested a fake guy?  
Just because he wasn't every day in the spotlights it doesn't mean he wasn't real, you can't really have articles every day about every damn cofounder on this planet, especially since the guy in charge is always in the spotlight! He was a google employee, he lived with this guy in the same condo for years, that's it! If I were to ask you who the f* Robyn Denholm is probably 99% will have no clue and you can barely find anything about her on the internet also. Go to every exchange and look for the number 3 or 4 in the ranks and probably there will be less info about than this Gary Wang.

What I meant to say is I am actually suprised to see Gary Wang is *not* a fake guy. It's clear now, that the FEDs actually caught him that this is the case ofc.
That being said, yes, you are probably right about many people in high-but-not-the-highest-positions in different companies are mostly unknown faces.

[suzanne5223]

I hope Mark Cohen does the right thing to save his client and SBF also helps himself.

Why would you want SBF to not be punished for what he has done?

No, it's not that I dont want him be punished for what he has done. I am just giving an account of the gravity of the atrocity he has done with the FTX user's fund and the possible tricks that all the parties involved will pull just like we watch in the movie where the innocent man suffers the most. An example is what you said about Wang.


Following the Sam Bankman-Fried case. Court records show he purchased Robinhood shares with $546 million through Alameda Research and following the FTX's bankruptcy, the US government opens an inquiry into the $372 million cyberattack because the issue happened by surprise right after the FTX exchange filed for bankruptcy which is totally fishy.

[bbc.reporter]

Following the Sam Bankman-Fried case. Court records show he purchased Robinhood shares with $546 million through Alameda Research and following the FTX's bankruptcy, the US government opens an inquiry into the $372 million cyberattack because the issue happened by surprise right after the FTX exchange filed for bankruptcy which is totally fishy.

Everything about FTX, Sam Bankrupt-Fried, Caroline Ellison and Gary Wang have become one confusing disorder of information and confusion.

There was also new information only a few days ago that FTX has also been mixing some coins then converting them to bitcoin through changenow.com. Another update is that it was discovered that FTX and Alameda had a shell company called North Dimension where it was the intermediary when FTX wanted to send customer funds to Alameda.

I am going to stop following this FTX case now hehe. Every news release to the public appears to be created to confuse everyone.

[suzanne5223]

Following the Sam Bankman-Fried case. Court records show he purchased Robinhood shares with $546 million through Alameda Research and following the FTX's bankruptcy, the US government opens an inquiry into the $372 million cyberattack because the issue happened by surprise right after the FTX exchange filed for bankruptcy which is totally fishy.

Everything about FTX, Sam Bankrupt-Fried, Caroline Ellison and Gary Wang have become one confusing disorder of information and confusion.

There was also new information only a few days ago that FTX has also been mixing some coins then converting them to bitcoin through changenow.com. Another update is that it was discovered that FTX and Alameda had a shell company callee North Dimension where it was the intermediary when FTX wanted to send customer funds to Alameda.

I am going to stop following this FTX case now hehe. Every news release to the public appears to be created to confuse everyone.

There's a lot of hidden agenda about the FTX issue especially Sam Bankman-Fried's roles in everything it makes me think the guy is a smart thief because he seems to have everything planned. He invested in Robinhood stock around May 12 (he acquired a 7.6% stake), I also read that he had a stake on Twitter either and he was reported to have met with President Biden's White House aides four times in 2022 before he was arrested on federal fraud charges.
Technically the federal fraud charge could be a game prepared by all the powerful people involved in the FTX issue.

[cr1776]

Following the Sam Bankman-Fried case. Court records show he purchased Robinhood shares with $546 million through Alameda Research and following the FTX's bankruptcy, the US government opens an inquiry into the $372 million cyberattack because the issue happened by surprise right after the FTX exchange filed for bankruptcy which is totally fishy.

Everything about FTX, Sam Bankrupt-Fried, Caroline Ellison and Gary Wang have become one confusing disorder of information and confusion.

There was also new information only a few days ago that FTX has also been mixing some coins then converting them to bitcoin through changenow.com. Another update is that it was discovered that FTX and Alameda had a shell company callee North Dimension where it was the intermediary when FTX wanted to send customer funds to Alameda.

I am going to stop following this FTX case now hehe. Every news release to the public appears to be created to confuse everyone.

There's a lot of hidden agenda about the FTX issue especially Sam Bankman-Fried's roles in everything it makes me think the guy is a smart thief because he seems to have everything planned. He invested in Robinhood stock around May 12 (he acquired a 7.6% stake), I also read that he had a stake on Twitter either and he was reported to have met with President Biden's White House aides four times in 2022 before he was arrested on federal fraud charges.
Technically the federal fraud charge could be a game prepared by all the powerful people involved in the FTX issue.

Using FTX to launder political donations and things like billions in dollars to Ukraine, and then some coming back to those in power to buy more votes.  It is disgusting.

[suzanne5223]

Using FTX to launder political donations and things like billions in dollars to Ukraine, and then some coming back to those in power to buy more votes.  It is disgusting.

Yes, it is. I heard rumors about the Samuel Bankman-Fried billions of dollars to Ukraine but I never hear from a trusted source. Is this rumor true?
What do you think about SBF pleading not guilty to the fraudulent charges while Caroline and Gary Wang pleaded guilty to their roles in the FTX bankruptcy despite they are not the prime wrongdoer?

[Kryptowerk]

Using FTX to launder political donations and things like billions in dollars to Ukraine, and then some coming back to those in power to buy more votes.  It is disgusting.

Yes, it is. I heard rumors about the Samuel Bankman-Fried billions of dollars to Ukraine but I never hear from a trusted source. Is this rumor true?
What do you think about SBF pleading not guilty to the fraudulent charges while Caroline and Gary Wang pleaded guilty to their roles in the FTX bankruptcy despite they are not the prime wrongdoer?

It is a tangled web of individuals responsible for the mess that FTX is/was.
I don't think it's strange to see SBF pleading not guilty - that's the usual way to go about these things. It's more strange to have other directly plea guilty but afaik it's normal if in return you get a deal for a softer sentencing.

Regarding the allegations you mentioned, I wonder that, too. Remember reading something like this on a smaller news site but can't find it again. Probably just some FUD with political agenda that was stopped from spreading too much.
Unless anyone has a good source?

[cr1776]

Using FTX to launder political donations and things like billions in dollars to Ukraine, and then some coming back to those in power to buy more votes.  It is disgusting.

Yes, it is. I heard rumors about the Samuel Bankman-Fried billions of dollars to Ukraine but I never hear from a trusted source. Is this rumor true?
What do you think about SBF pleading not guilty to the fraudulent charges while Caroline and Gary Wang pleaded guilty to their roles in the FTX bankruptcy despite they are not the prime wrongdoer?

I haven't seen details on it yet and whether it is true or not.  However given the stuff that was suppressed about Hunter Biden's laptop, Hillary Clinton's use of foreign nationals in 2016 to impact the election etc, it wouldn't surprise me if in a few years we find out it really was true.  The lies from Fauci at first that masks don't work, then they do and he admitted they lied etc.

Either way when SBF is donating millions to buy votes and protection, whether it went through Ukraine or not doesn't matter too much.

You see stuff like this you see them raising money for Ukraine, but not the other way:
https://twitter.com/SBF_FTX/status/1501268476488417281


Through Nov 30, 2022 it looks like the US sent about $15.1 billion in financial support (e.g. money) vs 22.9 in weapons, equipment, training etc.  Plus 9.9 billion in "humanitarian aid".  (https://www.cfr.org/article/how-much-aid-has-us-sent-ukraine-here-are-six-charts)  and (https://www.csis.org/analysis/aid-ukraine-explained-six-charts )

And then you have the arrest a few hours before he was supposed to testify (https://www.yahoo.com/entertainment/miranda-devine-calls-extremely-suspicious-184204146.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAI4BaVJYpMUKWQh6aIhNHkyfTqsBHX_FyWlNiBgt0rX8s26HXtEr2wNl7MMtcB7aiP0_nl_pgqeV19S9d8DPPHBQJstGnLgJmpATsliEWfxFseSNIZu0TmscUkVoXYHDV63bfAU_xa-ejWZktfI7N_SS4IXA-rtIlb7WdC0VHgNQ). 

Seems suspicious, like they wanted to stop him from saying something.

[suzanne5223]

Using FTX to launder political donations and things like billions in dollars to Ukraine, and then some coming back to those in power to buy more votes.  It is disgusting.

Yes, it is. I heard rumors about the Samuel Bankman-Fried billions of dollars to Ukraine but I never hear from a trusted source. Is this rumor true?
What do you think about SBF pleading not guilty to the fraudulent charges while Caroline and Gary Wang pleaded guilty to their roles in the FTX bankruptcy despite they are not the prime wrongdoer?

It is a tangled web of individuals responsible for the mess that FTX is/was.
I don't think it's strange to see SBF pleading not guilty - that's the usual way to go about these things. It's more strange to have other directly plea guilty but afaik it's normal if in return you get a deal for a softer sentencing.

Regarding the allegations you mentioned, I wonder that, too. Remember reading something like this on a smaller news site but can't find it again. Probably just some FUD with political agenda that was stopped from spreading too much.
Unless anyone has a good source?

I am not in law and I don't know have a slight idea about what SBF ought to do but I believe he must have a valid reason for pleading not guilty while other plead guilty.
About SBF activities with Ukraine, I think we need to be extra careful and always find the truth about things we read especially when the information can cause FUD in the market because the site you said may have taken down the news. From what I see there's a lot of FUD information spreading ever since the SBF issue happened.

Using FTX to launder political donations and things like billions in dollars to Ukraine, and then some coming back to those in power to buy more votes.  It is disgusting.

Yes, it is. I heard rumors about the Samuel Bankman-Fried billions of dollars to Ukraine but I never hear from a trusted source. Is this rumor true?
What do you think about SBF pleading not guilty to the fraudulent charges while Caroline and Gary Wang pleaded guilty to their roles in the FTX bankruptcy despite they are not the prime wrongdoer?

I haven't seen details on it yet and whether it is true or not.  However given the stuff that was suppressed about Hunter Biden's laptop, Hillary Clinton's use of foreign nationals in 2016 to impact the election etc, it wouldn't surprise me if in a few years we find out it really was true.  The lies from Fauci at first that masks don't work, then they do and he admitted they lied etc.

Either way when SBF is donating millions to buy votes and protection, whether it went through Ukraine or not doesn't matter too much.

You see stuff like this you see them raising money for Ukraine, but not the other way:
https://twitter.com/SBF_FTX/status/1501268476488417281
[snip] 

Seems suspicious, like they wanted to stop him from saying something.

Yes, there are a lot of suspicious activities in the SBF case and that includes how he was arrested because was arrested 3 days after he was seen leaving the white house, they likely had a meeting about it before he was charged with fraud.
Sooner or later the truth will be known.

[cr1776]

I am not in law and I don't know have a slight idea about what SBF ought to do but I believe he must have a valid reason for pleading not guilty while other plead guilty.

I think the reason is:  everyone else has turned on him so there was no deal offered for him to take.  The others probably got a "if you cooperate with us [the prosecutors] we will recommend leniency to the judge".  So they might get X years vs Y years if they are shown to cooperate.

For him, everyone else had already turned so his choice was to (a) plead guilty and get a max sentence, or (b) plead not guilty and hope that he can show that they were the real ones who were the criminals, they were lying because of the plea deal above etc.  Then he might have a chance of getting off vs a guaranteed long sentence.

In short, his only choice at that point was to plead not guilty.