Alameda Chief Gets Ex-SEC Top Gun as Lawyer for FTX Probe

Ex-Alameda Research CEO Caroline Ellison has hired Stephanie Avakian and WilmerHale for the upcoming FTX probe.
Avakian was previously the head of the US SEC’s enforcement department.
Meanwhile, US prosecutors have started investigating SBF for fraud.

The rumors that former Alameda Research CEO Caroline Ellison was in New York instead of Dubai may be proven true, given recent developments that have come to light. According to journalist Tiffany Fong, she has onboarded former SEC enforcement head Stephanie Avakian as her lawyer for the upcoming House hearing.

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Bloomberg and other prominent media institutions also provided similar information, adding that WilmerHale, the law firm where Avakian is the head of the securities and financial services department. Previously, Avakian worked for the SEC from 2016 up to 2022, obtaining the lofty position of head of its enforcement division.

People commented on Ellison’s inability to pay for the hefty fees that Avakian and WilmerHale may require. In context, previous news stated that Ellison’s net worth as of November 2022 was $15 million. However, her trading positions at Alameda were said to have been highly problematic, to say the least.

The person who sent the tweet above believes that such a high-profile defense would gain WilmerHale massive exposure, which would compensate potentially for a pro bono service to Ellison. However, there are no facts regarding this detail at the moment.

On the other hand, Sam Bankman-Fried (SBF), the disgraced CEO of FTX, said that he would also testify in front of the US Congress possibly next week. Prosecutors also revealed that they are going to investigate Bankman-Fried for fraud.

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Jesus Dawal

Jesus Dawal Jr covers news related to the crypto space in Asia and in Australia, although he follows the latest events in the US and Europe as well. He is most interested in the blockchain gaming and regulation aspects of the industry.