Caroline Ellison, former CEO of Alameda Research, is facing sentencing on Tuesday in New York. Prediction markets are indicating a high probability of her avoiding prison time, reflecting the argument for leniency based on her cooperation with prosecutors. However, there are also significant bets on short-term prison sentences, highlighting the uncertainty surrounding the case.
The SEC is expressing potential opposition to FTX’s plan to repay creditors using stablecoins, citing concerns about the legality of these transactions under federal securities laws. The regulator also highlighted the lack of a designated distribution agent for the stablecoin payments. This comes after FTX’s approved restructuring plan promised up to 118% repayment to creditors, a rare outcome in U.S. bankruptcies.
Justin Sun, the founder of Tron, has taken to social media to confront critics of his newly launched Sun (SUN) meme coin, echoing a move reminiscent of former FTX founder Sam Bankman-Fried. This bold move, coupled with the recent success of Sun Pump, has sparked conversations about the future of meme coins and the lasting impact of past events like the FTX collapse.
Ryan Salame, a former FTX executive sentenced to 7.5 years in prison, is seeking to overturn his plea deal, claiming the government breached an agreement to protect his partner, Michelle Bond, from further legal scrutiny. Salame alleges prosecutors used the plea negotiations to pressure him into pleading guilty by implying Bond would be spared from investigation. He is now requesting the court either enforce the government’s promise to drop the investigation into Bond or vacate his conviction.
Bankrupt cryptocurrency exchange FTX will pay $12.7 billion in relief to its customers as part of a settlement with the Commodity Futures Trading Commission (CFTC). The settlement aims to compensate customers who lost deposits during the exchange’s collapse in late 2022.
The Biden Victory Fund has returned a $50,000 donation from Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX. Bankman-Fried, who was sentenced to 25 years in prison last month for stealing $8 billion from customers, donated to Biden in 2022. Since April 2023, the U.S. Marshals Service has collected over $2.35 million in FTX donations from over 150 political campaigns and committees. Other politicians and organizations that have returned FTX donations include the Democratic National Committee, the National Republican Senatorial Committee, and the campaign of Rep. Abigail Spanberger (D-VA).
Sam Bankman-Fried, the former CEO of the failed cryptocurrency exchange FTX, is set to cooperate with a class-action lawsuit filed by investors and customers who lost money when the company collapsed. Bankman-Fried has agreed to assist in prosecuting celebrities who endorsed FTX, including Tom Brady, Larry David, Stephen Curry, Shaquille O’Neal, and Naomi Osaka. The lawsuit alleges that the celebrities promoted FTX without disclosing that they were paid by Bankman-Fried, and that they are therefore liable for some of the losses incurred by investors.
