Rule number one, if you’re looking at legal troubles that could change your semi-permanent residence to a federal prison, is to make darn sure you have the best lawyer you can afford from millions of dollars that you may have allegedly illegally secured.
Put Caroline Ellison in that category, the ex-CEO of Alameda Research, the hedge fund owned by her one-time boyfriend Sam Bankman-Fried, another member of the ex-CEO who’s being chased by federal investigators club.
Ellison has retained the former top cryptocurrency regulator for the SEC, Stephanie Avian, who now chairs the securities and financial services department at the law firm WilmerHale.
She is no stranger to high-profile cases, having worked on the Elizabeth Holmes fraud case and the case involving Elon Musk and his tweets about taking Tesla private when she worked for the SEC.
The crux of the investigation involving Ellison is the $3.3 billion amount of borrowed funds Alameda got from the cryptocurrency exchange she lent to SBF. Court docs reveal that money was used to cover losses and fund high-risk bets.
While her frizzy-haired ex-lover has said yes to darn near every interview request he received, Ellison has laid low. She hasn’t said much of anything, which could mean she figures silence is golden as she prepares for her legal fight, or she’s talking to the feds and cutting a deal to save herself.
Bankman-Fried has a date to appear before lawmakers in the Senate Banking Committee next week. Not as fun and sexy as an interview with George Stephanopolous, but one he might want to make sure he puts on his calendar.
Here’s the wording from the official invitation that he has yet to RSVP for.
“As the Founder and CEO of FTX Trading Ltd. at the time of its collapse and the founder, principal owner, and former CEO of Alameda Research, you must answer for the failure of both entities that was caused, at least in part, by the clear misuse of client funds and wiped out billions of dollars owed to over a million creditors.”
Not the type of Christmas party you want an invite to, as congress looks to see if SBF will go on the naughty or nice list
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