Tuesday, February 7, 2023

MIT math genius could face more than 100 years in prison for cheating

Caroline Ellison The 28-year-old, who was director of Bahamas-based cryptocurrency exchange Alameda Research, a trading company affiliated with cryptocurrency exchange FTX, has pleaded guilty to fraud charges and could now face up to 100 years in prison.

Ellison, who showed a talent for maths from an early age, being part of Forbes magazine’s “The 30 Under 30” list, filed for bankruptcy last November 2022 with his FTX company.

According to a statement released by Sanjay Wadhwa and published in Forbes magazine, the United States Stock Exchange’s deputy director of compliance assured that both company founder Sam Bankman-Fried and Ellison hid information from investors.

,They were actively involved in a scheme to withhold material information from FTX investors, including efforts by Mr. Bankman-Fried and Ms. Ellison to artificially inflate the value of FTX obtained by Alameda from FTX. Acted as collateral for undisclosed loans. As per its undisclosed and virtually unlimited credit line”, says the statement.

Furthermore, Wadhwa assured in the statement that the two, together with the deputy director of FTX, hid the real risks facing cryptocurrency investors: “By covertly diverting funds from FTX clients to Alameda’s books, Defendants FTX risk hiding the real issues facing investors and customers.”

Now, the young woman will admit in court that she and Bankman-Fried withheld from investors information relating to the exchange of funds between Alameda Research and FTX, for what reason? He could be sentenced to more than 100 years in prison. However he could only be prosecuted for criminal tax violations and could be released after paying $250,000 bail.

For her part, Bankman-Fried is under house arrest at her parent’s home after being extradited from the Bahamas to the United States, after paying $250 million in bail.

Nation World News Desk
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