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Caroline Ellison, the former CEO of Alameda Research, is set to be sentenced by a Manhattan federal court tomorrow. Ellison has previously pled guilty to conspiring to defraud FTX customers alongside her ex-romantic partner and boss Sam Bankman-Fried (SBF). Bankman-Fried was sentenced in April to 25 years in prison. Now 29 years old, Ellison has pleaded guilty to two counts of conspiracy to commit wire fraud, each with a maximum prison sentence of 20 years; two counts of wire fraud , each with a maximum sentence of 20 years; one count of conspiracy to commit money laundering with a maximum sentence of 20 years; one count of conspiracy to commit commodities fraud with a maximum sentence of five years; and one count of conspiracy to commit securities fraud with a maximum sentence of five years. Despite the severity of her crimes and the staggering tally of maximum sentences, practical guidelines and her extensive cooperation with authorities mean that Ellison might not actually s...

While Madoff has remained the top household name for financial fraud for the past 16 years, it may finally be time to anoint a new fraud king: the former head of Evergrande, Hui Ka Yan. Evergrande collapsed in 2021 after three years of being the largest and most valuable real estate company in the world. The success of the company also briefly made Hui the wealthiest individual in China. But as the Chinese real estate market began to falter, the books for Evergrande looked more and more cooked, and by 2023, the company was bankrupt and facing liquidation. Read more: A year on from the US regional banking crisis, what’s changed? Inflation-Adjusted Fraud means Madoff Keeps Crown While the $78 billion fraud claim being leveled against Evergrande and Hui Ka Yan is significantly larger than the $65 billion fraud that Madoff accomplished over decades, it is actually a much smaller amount when adjusted for inflation.  In this case, after the adjustment, Madoff’s fraud would am...

The FTX founder participates in ‘ prison omics’ at a Brooklyn detention center where demand for mackerel pouches outshines interest in Bitcoin and crypto. Convicted FTX founder Sam Bankman-Fried has battered seafood delicacies with fellow inmates during his time at the Brooklyn Metropolitan Detention Center (MDC). He exchanged it for services while awaiting his sentencing, according to the Wall Street Journal citing people familiar with the matter.  Bankman-Fried paid four mackerel pouches to a detainee for the haircut he carried at his trial in a New York federal courthouse, per the report. Bankman-Fried has seemingly substituted his crypto-investing days for prison economics as his conviction may probably bar him from leading a digital asset business for a considerable time period.  “The mack currency system is far more stable than crypto.” Bill Baroni, a prison consultant Baroni added that Bankman-Fried has also delivered crypto tips to prison guards on occasion. Ahea...

A former attorney of the U.S. Securities and Exchange Commission (SEC) believes prosecution by the Department of Justice (DOJ) is necessary to deal with crypto grifters. John Reed Stark, who spent 15 years as an SEC enforcement attorney leading cyber-related investigations, says crypto criminals treat regulatory enforcement with levity. DOJ prosecution in crypto-related fraud cases was lacking compared to the numerous enforcement actions by the SEC, he wrote on X. The situation is “mind-boggling,” Stark added. SBF’s Mom and Dad: Criminal Beneficiaries, Profiteers, Conspirators and Enablers I served for almost 20 years as an attorney in the SEC Division of Enforcement (including 11 years as Chief of the SEC’s Office of Internet Enforcement) and led dozens of SEC prosecutions with… pic.twitter.com/pElbR2wUeX — John Reed Stark (@JohnReedStark) September 23, 2023 Stark’s statement on X The former SEC official also pointed out the attitude of some major stakeh...

U.S. prosecutors state FTX founder Sam Bankman-Fried has proposed extensive and intrusive jury questions for his upcoming fraud trial. On Sept. 15, prosecutors from the Southern District of New York requested the judge overseeing the upcoming criminal trial to reject the defense’s proposed questions for the voir dire, the preliminary juror screening before the trial. They argue that these questions might extend the selection timeframe and bias jurors toward the defense’s client. “The defendant’s proposed voir dire contains numerous unnecessary and time-consuming questions, often soliciting open-ended discussion, as well as questions that are repetitive, prejudicial, and argumentative.” Prosecutors from the Southern District of New York Earlier last week, both parties presented their proposed questions for prospective jurors, with significant similarities, particularly regarding potential connections to individuals involved in the case or preconceived opinions about th...

Crypto Twitter is speculating that former FTX chief Sam Bankman-Fried (SBF) could be cooperating with the Department of Justice (DoJ) on a number of current and pending crypto-related investigations. The rumor mill went into overdrive when SBF was seen — and photographed — walking near the office of the Southern District New York DoJ. The curly-haired ex-billionaire is currently under house arrest and is only allowed to venture outside to meet with his attorney or the authorities. Given that it’s highly unusual for defendants to meet with prosecutors, for many, the only logical explanation (if he’s not meeting his own lawyers) is that he’s likely turned state’s evidence. Even before the photographs hit Twitter, s US picions had been aro US ed when attorneys filed new documents relating to an ongoing case that was launched by several investors against Bitfinex and Tether. Hey there little fella @SBF_FTX What are you up to bud? pic.twitter.com/EbcBSi16ZF — Arbitra...