In a shocking revelation, Caroline Ellison, the former CEO of Alameda Research, admitted that she was involved in a fraud scheme orchestrated by her ex-boyfriend and former colleague, Sam Bankman-Fried, the founder of FTX exchange. Ellison testified in court that Bankman-Fried pressured her to manipulate the trading volume and liquidity of Alameda Research, a leading cryptocurrency trading firm, to inflate its valuation and attract more investors. Ellison said that she complied with Bankman-Fried’s demands out of fear and love, but later realized that she was being used and abused by him.
She decided to cooperate with the authorities and expose the fraud, hoping to clear her name and reputation. Bankman-Fried, who is also the CEO of FTX exchange, one of the largest cryptocurrency exchanges in the world, has denied any wrongdoing and accused Ellison of lying and defaming him.
SBF claimed that Ellison acted on her own and that he had no knowledge or involvement in the fraud. The trial is expected to last for several weeks and could have major implications for the cryptocurrency industry, as Alameda Research and FTX exchange are among the most influential and powerful players in the market.
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FTX and its bankrupt founder SBF, has filed lawsuits against several law firms and attorneys for allegedly facilitating a fraudulent scheme that cost him $200 million. According to the complaint, Bankman-Fried was tricked into lending $200 million worth of crypto assets to Alameda Research, a trading firm he also founded, under the pretext of a margin call.
However, the lawsuit claims that the margin call was a sham, and that the defendants used the borrowed funds to engage in market manipulation and insider trading. The complaint also alleges that the defendants breached their fiduciary duties, committed legal malpractice, and violated various securities laws.
Bankman-Fried is seeking to recover the $200 million he lent to Alameda, as well as punitive damages and attorney fees. He is also asking the court to appoint a receiver to take control of Alameda’s assets and operations, and to conduct a forensic audit of its trading activities. Bankman-Fried claims that he has been unable to access or verify Alameda’s financial records, and that he suspects that the firm is insolvent or close to insolvency.
The lawsuit names several law firms and attorneys as defendants, including Perkins Coie LLP, Cooley LLP, Fenwick & West LLP, Baker Botts LLP, and Paul Hastings LLP. The complaint accuses them of conspiring with Alameda’s principals and employees to orchestrate the fraudulent scheme, and of providing false or misleading legal advice to Bankman-Fried. The lawsuit also alleges that some of the defendants had conflicts of interest, as they represented both Bankman-Fried and Alameda in various transactions and disputes.
Bankman-Fried is one of the most prominent figures in the crypto industry, with a net worth of over $10 billion. He founded FTX in 2019 and has since grown it into one of the largest and most innovative crypto exchanges in the world. He is also known for his philanthropic efforts, having pledged to donate at least half of his wealth to charity. He has been vocal about the need for more regulation and transparency in the crypto space and has expressed support for the recent efforts by the U.S. Securities and Exchange Commission (SEC) to crack down on fraud and misconduct.
$USDC, the world’s leading digital dollar stablecoin, has been launched on Polygon, a scalable and secure layer-2 platform for Ethereum. This is a major milestone for both projects, as it will enable users to access the benefits of fast, low-cost and secure transactions with $USDC on Polygon.
$USDC is a fully backed, regulated and transparent stablecoin that maintains a 1:1 peg to the US dollar. It is issued by Circle, a leading fintech company that provides payment and treasury infrastructure for the digital economy. $USDC is widely used across DeFi, crypto exchanges, payments and other use cases, with over $30 billion in circulation and more than $700 billion in on-chain transactions.
Polygon is a protocol and framework for building and connecting Ethereum-compatible blockchain networks. It offers a solution for Ethereum’s scalability and cost issues, by providing a multi-chain system that supports various scaling approaches such as Plasma, ZK-rollups and Optimistic rollups. Polygon is compatible with the Ethereum mainnet, which means that users can seamlessly transfer assets and use applications across both networks.
By launching $USDC on Polygon, they are opening up new possibilities for users to interact with DeFi protocols, NFT platforms, gaming dapps and other innovative projects on Polygon. Users can now enjoy fast and cheap transactions with $USDC, without compromising on security or decentralization. Users can also bridge their $USDC from Ethereum to Polygon using the official Polygon bridge, which is simple and user-friendly.