Discussion

• @lopatto@mastodon.xyz @lopatto@mastodon.xyz on mastodon

  “Ellison also acknowledged that her November 6 tweet to the Binance CEO offering to buy his FTT holdings at $22 per token was ‘kind of a misleading thing to tweet’ and expressed remorse,” according to the CFTC complaint. …

• @secgov @secgov on x

  The SEC today charged Caroline Ellison and Gary Wang for their roles in a multiyear scheme to defraud equity investors in the crypto trading platform FTX. Ellison and Wang are cooperating with the ongoing investigation.

• @compound248 @compound248 on x

  We just discovered Caroline Ellison and Gary Wang turned on @SBF_FTX, rattling him out to the Feds. The SEC's civil (non-criminal) complaint is built on their participation and gives us our first “insider's account” of the FTX disaster. I've given you 12 key takeaways below:👇🧵 ht…

• @seyitaylor @seyitaylor on x

  create low-liquidity shitcoin → pump shitcoin → use said shitcoin as collateral for real money → repeat https://twitter.com/...

• @ap_archpublic Andrew on x

  UPDATE: Plea deals with Ellison/Wang and DOJ/SDNY will include reduced jail time (but still include jail time) **source - “conversations in the 36 - 72 month range based on information and links to other parties/institutions...”

• @hsakatrades @hsakatrades on x

  “These advantages for Alameda were programmed into the code for FTX by Wang and others at the direction of Bankman-Fried” 1. No liquidation 2. Unlimited credit line (from customers) 3. Priority order execution via API 4. No balance checks when executing orders They still lost.

• @s_alderoty Stuart Alderoty on x

  When Chair Gensler says that “investors were left holding the bag” he may want you to believe that he's talking about FTX's customers who lost billions. He's not. He's referring only to FTX's sophisticated equity investors. The SEC has lost the plot line. https://twitter.com/...

• @fintechfrank Frank Chaparro on x

  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.

• @compound248 @compound248 on x

  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…

• @garygensler Gary Gensler on x

  Until crypto platforms comply with time-tested securities laws, risks to investors will persist. It remains a priority of the SEC to use all of our available tools to bring the industry into compliance. https://twitter.com/...

• @compound248 @compound248 on x

  5. Sam and Gary Own 100% of Alameda Anytime someone says “Alameda,” just substitute “Sam.” Sam owns 90% of Alameda and Gary 10%. Alameda has no clients - all that money is Sam and Gary's, stolen fair and square. https://twitter.com/...

• @chrisjbakke Chris Bakke on x

  The real winners of the crypto industry are the FTX bankruptcy lawyers who are billing $2,165/hour. https://twitter.com/...

• @compound248 @compound248 on x

  8. Sam CREATED Alameda's Deal and Took Actions to Hurt FTX Over $8 BILLION of customer funds were wired by customers DIRECTLY TO ALAMEDA rather than FTX. Eight. Billion. This was a de facto loan. Sam ensured Alameda (Sam) did NOT have to pay FTX interest on that money. https://tw…

• @dylanleclair_ Dylan LeClair on x

  Wow. Alameda was long USDT/short USD on margin on the FTX platform (using FTX customer funds), presumably to collect funding that shorts positions paid to longs. FTX owned and promoted https://t.co/..., which until 11/9/22 had redirected to USDT perpetual swap futures. https://tw…

• @hsakatrades @hsakatrades on x

  Caroline Ellison and Gary Wang have pleaded guilty to federal charges and are cooperating in the criminal case against Sam Bankman-Fried https://www.nytimes.com/...

• @rohangrey Rohan Grey on x

  The fact he just kept wide-eye lying, in public, long after the game was up. It's just *chef's kiss*. Keep getting that image of a dentist drilling out the rot of a tooth in my head and thinking about how much of the Dem party leadership would be left if that happened here. https…

• @gold_mansack @gold_mansack on x

  so Sam let Alameda (himself) borrow from FTX users WITHOUT collateral or maturity and didn't charge any interest, with no liquidation allowed while possessing faster execution over other firms - then told Congress + Press/Public the opposite, then blew up and kept on doing it?

• @laviedandre @laviedandre on x

  Jesus WEPT‼️ FTX & Alameda was a casino, where the owners of said casino, took their customers money, and lost it all betting (with leverage) in that very same casino. They had every advantage imaginable and it still went tits up‼️ https://twitter.com/...

• @peckshieldalert @peckshieldalert on x

  Ellison stated “apparently part of what's going on is that alameda actually has a long USDT/short USD margin position on FTX US that we aren't tracking?” https://help.ftx.com/... https://twitter.com/... https://twitter.com/...

• @digitalassetbuy @digitalassetbuy on x

  Translation: Sweep out the startups and bring in Wall Street because “you can trust us” FTX: entire industry as it exists bad MFGlobal/Madoff/2009 Financial crisis: It's not Wall Street we just need more rules put in place by the same people that presided over it https://twitter.…

• @compound248 @compound248 on x

  2. 💥 Sam told me to do it Caroline says Sam directed her to take customer funds from FTX in exchange for the made-up $FTT shitcoin. (In green highlight) This directly contradicts Sam's repeated “I didn't know” statements. Caroline is wisely throwing Sam under the bus. https://twi…

• @tetranode @tetranode on x

  1. 200M for naming rights to a stadium 2. 40M+ to political bribes 3. 8+ figs of Bahamian real estate 4. 9+ figs of investments that went south Selling customer funds for effective altruism, assumed that profit will smooth over steady-state deposit-withdrawal https://twitter.com/…

• @banthebbc @banthebbc on x

  Ellison/Wang SEC filing - This makes for interesting read. In a nutshell, Sam Bankman-Fried and his polycule friends took customer and investor funds and gambled with it in Alameda, lavish real estate in the Bahamas and large donations to the US Democrats. https://www.sec.gov/...

• @smtuffy Sean Tuffy on x

  I don't want to minimize the likelihood of intentional fraud and theft. Stuff seems bad. But I also want so say the story of FTX also reads like what would happen if a you and a few friends set up a brokerage firm just after like a year or two of working in finance. https://twitt…

• @molly0xfff Molly White on x

  SEC complaint against Caroline Ellison and Gary Wang: 🧵 https://www.sec.gov/...

• @ericbalchunas Eric Balchunas on x

  SEC says SBF authorized a “backdoor” which allowed Ellison (who is pleading guilty) access to customer funds for Alameda trades. https://www.cnbc.com/... https://twitter.com/...

• @el33th4xor @el33th4xor on x

  FEXs prohibit all of these behaviors. DEXs are open to front-running and MEV. And CEXs are wide open to abuse. https://twitter.com/...

• @0xallen_ @0xallen_ on x

  The SEC is asserting that FTT was a security. This is the Trojan horse. Setting precedent for future charges against a lot of tokens. https://twitter.com/...

• @jim_edwards Jim Edwards on x

  🧵There is an interesting difference b/w the SEC complaint vs SBF and its complaint against Caroline Ellison and Zixiao “Gary” Wang: The Ellison/Wang complaint makes a more detailed case that telling lies while offering crypto is a “securities” fraud. https://www.sec.gov/...

• @compound248 @compound248 on x

  3. May 2022: Shit Hits the Fan Despite already having “borrowed” billions and billions of FTX customer assets, by May, when crypto went bump in the night, Alameda (Sam) couldn't fulfill its borrower obligations. Sam ordered Caroline to take even more FTX customer money. https://t…

• @monasalama_ Mona Salama on x

  The SEC has also filed civil fraud charges against Caroline Ellison & Gary Wang SEC said Ellison under SBF direction “furthered the scheme by manipulating” the price of FTX-issued crypto token FTT with Wang creating the software code that allowed diversion of FTX customer funds h…

• @tarunchitra Tarun Chitra on x

  Where's Nishad? /s

• @statelayer @statelayer on x

  “From the inception of FTX, Defendants and Bankman-Fried diverted FTX customer funds to Alameda” trabucco omegafucked https://twitter.com/...

• @comfortablysmug @comfortablysmug on x

  SBF finding out the most expensive thing in the world is simping https://twitter.com/...

• @jcoviedo6 JC Oviedo on x

  And then SBF just started outright stealing the money https://twitter.com/...

• @trungtphan Trung Phan on x

  Caroline Ellison and Gary Wang plead guilty to fraud re: to FTX and spilled the beans on SBF: • Sam been lying • Wang built a back door to FTX for Alameda to sweep funds • Caroline ran Alameda (Sam's personal fund and he directed her to take customer funds) https://twitter.com/..…

• @collins_belton Collins Belton on x

  To further emphasize, while the SEC is alleging fraud, they're also clear they think exchange tokens are securities and even include a 3 page Howey analysis on FTT. People should expect this rubric to apply in...other contexts... https://twitter.com/... https://twitter.com/...

• @carnage4life @carnage4life on x

  One of the SEC's charges against SBF & Caroline is they artificially pumped the price of FTT then used that artificially high token valuation to make business deals. This sounds like just another day ending in Y in crypto. If this sticks, a bunch of founders & VCs are screwed. ht…

• @unusual_whales @unusual_whales on x

  Here is Caroline Ellison of Alameda Research who has just plead guilt to the charges by the SEC, SDNY, and CFTC, and has said that at Alameda they did not “tend to have things like stop losses... I think those are not necessarily good risk management tools.” https://twitter.com/.…

• @bitfinexed @bitfinexed on x

  Guess who archived https://shorttether.com/ just before they disabled the redirect? I did. I did! https://twitter.com/... https://twitter.com/...

• @icebergy_ @icebergy_ on x

  They're just like us https://twitter.com/...

• @molly0xfff Molly White on x

  Complaint cites SBF's statements to media post-collapse: “[SBF] acknowledged in a network television interview...: 'I wasn't even trying, like, I wasn't spending any time or effort trying to manage risk on FTX.'” can't believe those interviews would come back to bite him

• @adamscochran Adam Cochran on x

  I look forward to seeing Gensler under oath, regarding the SECs failed investigation into FTX US, and the preferential treatment his office was exploring with FTX, while his law by enforcement approach created a chilling effect in the US and sent users to offshore exchanges... ht…

• @dogetoshi Steven on x

  When FTX started going down Alameda execs including Ellison + SBF messaged each other in surprise that bitcoin wasn't crashing that much. https://twitter.com/...

• @dogetoshi Steven on x

  SBF wanted to shut down Alameda but decided not to as it would result in “less liquidity on FTX” https://twitter.com/...

• @basche42 Ben Basche on x

  Some very strange language in the complaint. This all has very little to do with securities https://twitter.com/...

• @compound248 @compound248 on x

  9. Securities Fraud Among the many frauds Sam et al committed was the securities fraud. The SEC frowns on poorly written footnotes. Imagine how it treats you lying to would-be investors about your fraud to raise fresh equity. “Fraud squared,” or something. https://twitter.com/...

• @ericbalchunas Eric Balchunas on x

  SEC says “SBF gave Alameda carte Blanche to use customer funds” yet SBF is still looking for the person who did this *insert hot dog meme* https://twitter.com/...

• @ldrogen Leigh Drogen on x

  I'm still absolutely floored that Alameda wasn't smart enough to at least establish a massive short perp position on binance knowing how fucked FTX was and what it was about to do to the coins https://twitter.com/...

• @matthewleeicp Matthew Russell Lee on x

  CRYPTO COOPERATOR: Alameda's Caroline Ellison signed this plea agreement Dec 19, but it was only released on the night of Dec 21, with Sam Bankman-Fried on his way to the SDNY courthouse. Inner City Press is here with will be reporting https://www.documentcloud.org/ ...

• @gunjanjs Gunjan Banerji on x

  “On more than one occasion, Alameda and Ellison, at Bankman-Fried's direction, actively engaged in the trading of FTT with the goal of supporting the price of the token” SEC says Alameda and Ellison manipulated FTT prices https://www.sec.gov/...

• @zerohedge @zerohedge on x

  Confirmed: @carolinecapital rolled on SBK The SEC charged Caroline Ellison and Zixiao Gary Wang, for their roles in a multiyear scheme to defraud equity investors in FTX SEC said Ellison and Wang ARE COOPERATING with the ongoing investigation

• @fintechfrank Frank Chaparro on x

  3) “When FTT and the rest of the house of cards collapsed, Mr. Bankman-Fried, Ms. Ellison, and Mr. Wang left investors holding the bag. Until crypto platforms comply with time-tested securities laws, risks to investors will persist.”

• @ercwl Eric Wall on x

  we nailed this one harder than the alameda employees nailed eachother https://twitter.com/...

• @autismcapital @autismcapital on x

  Caroline Ellison and Zixiao (Gary) Wang have already settled with the CFTC and SEC and are co-operating. They are both barred from ALL FORMS of securities participation in ANY form and have undisclosed future fines and disgorgement.

• @mayazi Maya Parody on x

  So now the SEC is claiming FTT was a crypto security token? Right after they get Caroling & Gary Wang to plea guilty & admit to the backdoor https://www.sec.gov/...

• @johnreedstark John Reed Stark on x

  SEC crypto-sweep is imminent. Per SEC Chair Gensler “Until crypto platforms comply with time-tested securities laws, risks to investors will persist. It remains a priority of the SEC to use all of our available tools to bring the industry into compliance.” https://www.sec.gov/...

• @belisarius2020 Bill Morgan on x

  Time tested securities laws. It begs the question: are cryptos securities? The time tested laws are leading to cryptos being treated differently in the USA than everywhere else. The time tested laws are not suited to cryptos without some modification. Just have some honesty /1 ht…

• @mikealfred Mike Alfred on x

  SBF is on his own. He will be gunning for Binance and Tether to try to win a plea deal. https://twitter.com/...

• @johnedeaton1 John E Deaton on x

  Caroline and Wang will likely get 5-6 years in a plea deal. No way SBFraud does less than 10. I don't see SDNY agreeing to anything less than 15-20 in a deal. But we will see. Mom and Dad need to get ready as well. https://twitter.com/...

• @cryptowendyo @cryptowendyo on x

  As anticipated, Caroline Ellison and Gary Wang are cooperating with the SEC against SBF & FTX Sam Trabucco is not mentioned Even more interesting - Gary Gensler is not mentioned in the press release with other SEC members conducting the investigation... https://www.sec.gov/...

• @hsakatrades @hsakatrades on x

  No mention of Tabasco in the CFTC filing. Mentioned a few times in the SEC filing in regards to how he was Alamedas Co- CEO for a while, until Caroline took the reins. Also stress how at the end of the day the goblin was the decision maker at Alameda too. https://twitter.com/...

• @jwverret @jwverret on x

  One reason the government, DOJ and SEC, is charging Caroline and Gary is that they are actually less credible witnesses if they aren't charged with felonies. But they will get massive sentence reductions for their cooperation.

• @compound248 @compound248 on x

  1. It is what we thought: • SBF lied • Wang built a back door to FTX for Alameda to sweep funds • Caroline ran Alameda (Sam's personal fund) • Sam invested in real estate, politicians, and venture capital 😅 https://twitter.com/...

• @dylanleclair_ Dylan LeClair on x

  FTX offered a synthetic derivative called USDTBULL which gave you 3x long exposure to its USDT perpetual swaps. Due the hourly funding payments that shorts paid to longs applied with leverage, heres what the chart looked like. FTX was using customer funds to enter the trade. http…

• @cftc @cftc on x

  NEWS: Today the CFTC charged Caroline Ellison, Alameda CEO, and Gary Wang, Alameda and FTX co-founder, with fraud in an action against Sam Bankman-Fried and his companies. Read more: https://www.cftc.gov/...

• @byzgeneral @byzgeneral on x

  SBF sacrificed 10 billion dollars, his business, his career and his freedom all for this chick who ended up snitching on him. “Down bad” just got a new meaning. https://twitter.com/...

• @dogetoshi Steven on x

  CFTC reiterating that BTC ETH and USDT are commodities in FTX filing. https://twitter.com/...

• @juliomedina Julio Medina on x

  @SECGov Crazy thing is he really did tell everyone what he was doing https://twitter.com/...

• @ahcastor Amy Castor on x

  Wang was responsible for the coding that allowed Alameda to divert FTX customer funds. Ellison used the FTX customer funds on Alameda. And SBF used those funds to make undisclosed venture investments, real estate purchases, and large political donations. https://twitter.com/...

• @realchetblong Chet Long on x

  🚨 CFTC now files charges along with the SEC against Caroline Ellison and Gary Wang. It certainly seems the SEC, CFTC and US Attorney strategized the timing of this: wait until SBF agrees to extradite, then while he's on a plane announce charges and their guilty pleas. 💥 https://t…

• @hsakatrades @hsakatrades on x

  Caroline Ellison & Gary Wang getting charged by the SEC, CFTC, & SDNY simultaneously, pleading guilty to SDNY charges and cooperating to snitch on the goblin. Netflix already securing the rights to the courtroom drama series.

• @bitboy_crypto Ben Armstrong on x

  Brilliant review. I would add the caveat to say that ofc the SEC says FTT is a security. That doesn't make it one. This is another backdoor tactic to get what he wants. And Gary freaking loves a good backdoor. https://twitter.com/...

• @fintechfrank Frank Chaparro on x

  2) “We further allege that Ms. Ellison and Mr. Wang played an active role in a scheme to misuse FTX customer assets to prop up Alameda and to post collateral for margin trading.”

• @monasalama_ Mona Salama on x

  Both Ellison and Wang are also cooperating with SEC ongoing investigation including “other securities law violations and into other entities and persons relating to the alleged misconduct” https://www.sec.gov/...

• @sassal0x @sassal0x on x

  SBF, Caroline Ellison and Gary Wang down Sam Trabucco gotta be absolutely sweating bullets

• @johnedeaton1 John E Deaton on x

  @GaryGensler and his SEC wouldn't even offer a meeting (with a low level staff member) regarding 75K retail holders. Only the rich ones get protected by Goldman Gary. https://twitter.com/...

• @ahcastor Amy Castor on x

  The SEC has also filed civil charges against Alameda Caroline Ellison and Gary Wang. Press release: https://www.sec.gov/... Complaint: https://www.sec.gov/...

• @hodlmagoo Magoo PhD on x

  @SECGov Where is @AlamedaTrabucco ?

• @ahcastor Amy Castor on x

  Ellison engaged in automated purchases of FTT to increase the price of those tokens and inflate the value of Alameda's collateral, which allowed Alameda to borrow even more from external lenders. https://twitter.com/...

• @cftcpham Commissioner Pham on x

  Congrats to our Enforcement Division for successful fraud charges vs Caroline Ellison & Gary Wang, who also pled guilty to SDNY criminal commodities fraud. This is an important step for justice for victims & follows earlier charges against SBF, FTX & Alameda. https://twitter.com/…

• @bitfinexed @bitfinexed on x

  GET REKT. SEC Charges Caroline Ellison and Gary Wang with Defrauding Investors in Crypto Asset Trading Platform FTX They already pled guilty. REKT. https://www.sec.gov/... https://twitter.com/... https://twitter.com/...