Ripple Counsel Claims ‘SEC Has Lost The Plot Line’ On Caroline Ellison Charges

U.S. Securities and Exchange Commission (SEC) on Wednesday charged the Former CEO of Alameda Research, Caroline Ellison and former CTO of FTX, Zixiao Wang for their roles in a marathon defraud scheme. However, Ripple’s General Counsel has claimed that the SEC has lost the plot line in the Sam Bankman-Fried (SBF) led collapse in the crypto market.

Ripple lawyer attacks SEC

Stuart Alderoty, General Counsel of Ripple commented on this major development and attacked SEC chair, Gary Gensler’s approach towards it.

He stated that when the SEC mentions that “investors were left holding the bag” they want everyone to believe that it is about FTX’s customers who lost their money. However, it is not about those customers as the Commission only cares about the FTX’s equity investors, he added.

Earlier, Coingape reported that Ripple Counsel challenged the FTX Venture investors to go after the SEC. He stated that they should demand that the commission should halt wasting taxpayer money over this case.

Ripple CEO, Brad Garlinghouse also mocked the SEC’s investigation and approach to the FTX collapse. He stated that the world is outraged by SBF and FTX’s fraud. Meanwhile, when Wells Fargo mismanages billions in customer funds, that matter barely blips on the SEC radar.

SEC claims FTT price manipulation

The US SEC in an update mentioned that Caroline Ellison and Wang are cooperating with the ongoing investigation.

However, in the complaint, it mentioned that from 2019 to 2022 Caroline Ellison followed the directions of SBF in manipulating the FTT token price. It added that FTT served as collateral for undisclosed loans by FTX of its users’ assets.