In a statement dated December 18, representatives of the SEC announced the filing of the proposed final decisions. The documents relate to former Alameda Research CEO Caroline Ellison, FTX CTO Gary Wang, and lead engineer Nishad Singh. At the moment, the decisions are awaiting final approval by the court.
The regulator confirmed that FTX has raised more than $1.8 billion from investors. The management positioned the platform as a secure trading platform with reliable asset protection. Investors were also assured that the Alameda Research fund operates on the stock exchange on a general basis. However, these statements turned out to be false.
In fact, FTX has secretly granted Alameda special privileges. The trading company was exempted from risk management procedures. In addition, she received an almost unlimited credit line. This line was provided by deposits from the exchange’s clients. This scheme allowed Caroline Ellison to borrow and lose billions of dollars without the threat of forced liquidation of positions.