Submitted by MatrixName t3_zsixyb in wallstreetbets
"Ellison pleaded guilty to seven counts, according to The Washington Post. She faces up to 110 years in prison, WaPo says. Wang pleaded guilty to four counts and faces up to 50 years in prison."
"Bankman-Fried and Wang allegedly gave Alameda and Ellison “carte blanche” to use funds deposited by FTX customers.
At its peak, FTX moved $20 billion daily in trades, according to the CFTC. Bankman-Fried and a select group of insiders, including Ellison and Wang, are alleged to be the only people who knew that FTX was engaging in fraud. The cases against Bankman-Fried are both criminal and civil and have been brought by the SDNY, the CFTC, and the SEC. Allegedly, FTX customer funds were used for loans to executives, risky trading by Alameda Research, political donations, and lavish spending on everything from beachfront homes to private jet flights."
"Ellison, acting on Bankman-Fried’s orders, borrowed billions of dollars from lenders, according to the SEC suit. Those loans were backed “in significant part” by the FTX token, which was issued by FTX and given to Alameda for free, the SEC wrote. Ellison’s job was to buy FTX tokens on various platforms in order to increase the price, thus making the FTX token that was collateral against Alameda’s loans more valuable. That, in turn, made it possible for Alameda to borrow even more."