A former top cryptocurrency regulator for the United States Securities and Exchange Commission (SEC) will represent Caroline Ellison, the former CEO of Alameda Research, in an ongoing federal investigation, according to a December 10 report from Bloomberg.
Ellison will be represented by Stephanie Avakian and a team of attorneys from WilmerHale. Avakain is currently a director of the firm’s Securities and Financial Services department. At the SEC, she was the director of the Enforcement Division, where she expanded oversight of cryptocurrencies, bringing cases against Robinhood and Ripple Lab.
According to the law firm’s website, “Ms. Avakian supervised the Division’s approximately 1,400 professionals and employees. During her four years at the helm of the Division, the SEC initiated more than 3,000 enforcement actions, obtained judgments and orders for more than $17 billion in penalties, and restitution, and returned approximately $3.6 billion to injured investors.”
His profile on the law firm’s website also noted that under “Ms. Avakian’s direction, a wide range of issues were addressed, including insider trading, financial fraud, and disclosure violations.” , auditing and accounting issues, market structure, asset management, and the Foreign Corrupt Practices Act. He also led the Law Enforcement Division to address novel issues at the forefront of today’s markets, such as initial coin offerings, digital assets, and cybersecurity.”
There are several ongoing investigations and at least seven class action lawsuits have been filed against FTX Group and its managers, Cointelegraph reported. Prosecutors from the United States attorney’s office in the New York borough of Manhattan and the California Department of Financial Protection and Innovation are investigating the bankrupt cryptocurrency exchange and its affiliates.
Federal prosecutors have also begun investigating whether former FTX CEO Sam Bankman-Fried was behind the collapse of the Terra ecosystem.. As part of a larger investigation into FTX’s own collapse, Prosecutors are investigating whether the Bankman-Fried empire intentionally caused a flood of “sell” orders on Terra’s algorithmic stablecoin TerraUSD Classic (USTC). According to a report in The New York Times, most of USTC’s sell orders came from Alameda Research.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.