Caroline Ellison hired Stephanie Avakian to represent herself in the ongoing federal probe over the collapse of FTX crypto exchange.
Caroline Ellison is the former CEO of Alameda Research. Alameda Research is an FTX-affiliated company. On 12 November, FTX exchange filed for bankruptcy with more than 100s of its affiliated companies including Alameda Research. Indeed FTX exchange used users’ funds in multiple activities like service promotions, political donations, sponsored programs, personal spends & also to fund affiliated companies. Alameda Research was one of the biggest affiliated companies which secured funds in Billions from FTX to sustain its financial position in the crypto market.
On 10 December, Bloomberg reported that Alameda Research’s former CEO hired Stephanie Avakian, a former SEC enforcement division chief and current partner at WilmerHale, to represent herself in the ongoing federal probe over the role of Alameda Research’ role behind the collapse of FTX crypto exchange.
So along with other lawyers, this former SEC official will also help Caroline Ellison to fight against legal hurdles.
The legal firm website notes “the former Director of the U.S. Securities and Exchange Commission’s Division of Enforcement, Stephanie Avakian is well positioned to help clients address the enforcement, governance and compliance issues presented by today’s markets”.
Bloomberg asked about these things to a spokesperson of the legal firm but he refused to comment on this matter.
Former Alameda Research CEO Caroline is an active online personality but so far to this date, she didn’t talk much about the downfall of the FTX exchange & Alameda Research’s bankruptcy.
Few reports were claiming that officials of Alameda Research & FTX exchange were planning to flee to Dubai. Perhaps a few reports noted that FTX & Alameda Research’s key officials were under the custody of Bahamian enforcement agencies.
On 4 December, The crypto Twitter community started to circulate a photo of Caroline Ellison. In the shared photo, Caroline was ordering coffee in New York and also that thing confirmed that she was not in custody.