Wednesday, December 21, 2022

FTX Race to the Courthouse

US Attorney Damian Williams, of the US Attorneys Office for the Southern District of NY announced (via a video on  Twitter) that they had filed charges against Caroline Ellison, former CEO of Alameda Reasearch,  and Gary Wang, co-founder of FTX, and that both had pled guilty and were cooperating with the government.

Now that was quick.  And it looks like Samuel Bankman-Fried is first on his way back having agreed to extradition. The question remains as to whether he will take a quick plea and cooperate, or proceed to challenge the government's case against him, a case that may have just gotten a bit stronger. 

But there is an unknown here that also remains to be seen.  Who will everyone be cooperating against? Is this limited to FTX, or will this extend beyond this company. 

One thing is certain - Congress needs to move just as quickly in cleaning up legislation to assure that investors are properly protected. 

See also Anat Beck's piece here.


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