In reference to the continued investigation into the catastrophic failure of the cryptocurrency alternate FTX and its buying and selling agency Alameda Analysis, the ex-CEO of Alameda, Caroline Ellison, has reached out to a former official of the Securities and Alternate Fee (SEC) to characterize as her lawyer.

Lawyer A High Crypto Cop?

Stephanie Avakian, a former enforcement division chief on the SEC, was additionally in command of most of the company’s most high-profile cryptocurrency prosecutions throughout her tenure over there.

Earlier than becoming a member of the Washington DC-based legislation agency, WilmerHale, in 2020 — Stephanie served because the enforcement director for the SEC for a complete of 4 years, throughout which she additionally served because the deputy director.

She shared the function of director with Steve Peikin, who’s at present representing FTX in its chapter proceedings. Throughout their time in workplace, the regulatory physique elevated the quantity of enforcement exercise contained in the cryptocurrency business.

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As reported earlier on CoinGape, FTX’s chapter workforce, Congress, regulators and prosecutors from Manhattan are investigating prices that billions of {dollars} in buyer funds deposited on the alternate ended up being traded by Alameda, which is a Hong Kong-based sibling buying and selling agency of the now defunct FTX empire.

Stephanie’s Earlier Circumstances

One of many instances that Stephanie reviewed earlier was that of Ripple Labs, a blockchain startup whose founders had been charged with fraudulently producing $1.3 billion by way of the sale of unregistered securities backed by digital belongings. The legality of crypto belongings as securities remains to be up for dialogue within the wake of the 2020 SEC lawsuit.

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Aside from the cryptocurrency sector, Stephanie was in command of overseeing enforcement actions taken in opposition to Common Electrical, Robinhood Markets, and Elon Musk, the brand new proprietor of Twitter.

Negotiation In The Making?

Sam Bankman-Fried, who based FTX and served as its earlier chief government officer, has pointed the finger of blame at Alameda in a number of interviews with the media.

In distinction, Ellison has maintained her silence to this point, lending credence to the notion that she could also be negotiating a cooperation settlement with the related authorities.

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