Did Bankman-fried & Ellison mislead investors about FTX?

The complaint alleges that, by manipulating the price of FTT, Bankman-Fried and Ellison caused the valuation of Alameda’s FTT holdings to be inflated, which in turn caused the value of collateral on Alameda’s balance sheet to be overstated, and misled investors about FTX’s risk exposure.

Did Ellison manipulate the price of FTT?

According to the SEC’s complaint, between 2019 and 2022, Ellison, at the direction of Bankman-Fried, furthered the scheme by manipulating the price of FTT, an FTX-issued exchange crypto security token, by purchasing large quantities on the open market to prop up its price.

Why did Lisa Ellison apologize to FTX?

Ms. Ellison said she wanted to apologize to FTX’s customers and investors and to Alameda’s lenders. Mr. Bankman-Fried, 30, is facing multiple criminal charges stemming from what prosecutors said was a multiyear scheme that defrauded customers, investors and lenders.

What happened to Jennifer Ellison if FTX collapsed?

Ellison pleaded guilty to seven charges in the collapse of FTX, including fraud, according to her plea agreement with the Southern District of New York filed on December 18. She faces up to 110 years in jail, but has struck a plea deal with the Department of Justice and is cooperating with authorities.