February 4, 2023

The U.S. Securities and Exchange Commission (SEC) on Wednesday charged former CEO of Alameda Research Caroline Ellison and former CTO of FTX Zixiao Wang for their role in a marathon fraud scheme. However, Ripple’s General Counsel has claimed that the SEC has lost the plot line in the Sam Bankman-Fried (SBF)-led collapse of the crypto market.

Ripple Lawyer Attacks SEC

Stuart Alderoty, Ripple’s General Counsel commented about this important development and attacked SEC Chairman Gary Gensler’s approach to it.

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He stated that when the SEC mentions that “investors left the bag,” they want everyone to believe that it’s FTX’s customers who lost their money. However, it is not about those customers as the Commission only cares about the FTX’s equity investors, he added.

Previously, CoinGape reported that Ripple Counsel challenged FTX Venture investors to go after the SEC. He stated that they should demand that the committee stop wasting taxpayers’ money on this matter.

Ripple CEO Brad Garlinghouse also scoffed at the SEC’s investigation and handling of the FTX collapse. He stated that the world is outraged by the fraud of SBF and FTX. Meanwhile, when Wells Fargo mismanages billions in client funds, that issue barely appears on the SEC’s radar.

SEC claims FTT price manipulation

The US SEC reported in an update that Caroline Ellison and Wang are cooperating with the ongoing investigation.

However, the complaint stated that Caroline Ellison followed SBF’s lead in manipulating the FTT token price from 2019 to 2022. It added that FTT served as collateral for secret loans by FTX of its users’ assets.

Ashish believes in decentralization and has a keen interest in the development of Blockchain technology, the cryptocurrency ecosystem and NFTs. He aims to create awareness around the growing crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching a thriller or exercising outside. Reach me [email protected]

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

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