The SEC's complaint against Caroline Ellison and Gary Wang classifies FTX's FTT token as a security since it was “offered and sold as an investment contract”
The SEC has labelled the $FTT token a “security”. 1. You couldn't even buy the FTT token in the US. 2. This sets a dangerous precedent for other tokens. 3. If it is indeed a security, then many influencers, counterparties and VCs have broken the law. Gensler's at it again. 🤦♂️
1) “As part of their deception, we allege that Caroline Ellison and Sam Bankman-Fried schemed to manipulate the price of FTT, an exchange crypto security token that was integral to FTX, to prop up the value of their house of cards” ~ SEC Chair Gary Gensler.
10. Magic Money in a Box was a “Security”😬 SamCoins, ShitCoins, Web3 “tokens,” magic beans. Call em what you want, but they're entirely fabricated from dreams. And Sam lied about them. A lot. And they “manipulated” the price of $FTT. And the SEC declares it a security.👀 https://t…
> “And then your 28-year-old boss is like “so guys, a little bad news, actually we're a Ponzi? Sorry if I didn't mention that earlier.” https://www.bloomberg.com/...
So, as everyone with an ounce of brain matter in their skulls knew, @SBF_FTX and @carolinecapital both conducted repeated, increasingly desperate fraud. There is no doubt there was something ‘unknown’ to their actions. They simply defrauded customers and investors. Egregiously. h…
The only thing remotely true about @SBF_FTX's “I'm too stupid” defense is that he was dumb enough to explain exactly how he was rorting people on one of the world's most listened to finance podcasts. https://twitter.com/...
The fact that @matt_levine remembers the famous ‘box’ episode with Sam Bankman-Fried as having happened last year is indicative of just how quickly everything fell apart. https://www.bloomberg.com/... https://twitter.com/...
The SEC is effectively trying to ban tokens & blockchains beyond Bitcoin within the US. They insist that a token is a retail instrument that must be registered as a security, but they have not shared a single token they believe is exempt. Registration is technically impossible.