Crypto King And Queen Appear To Be Turning On Each Other About FTX Collapse

From being a pair, it appears that Sam Bankman-Fried and Caroline Ellison are turning on each other.

For those who may not be aware, Bankman-Fried and Ellison are two of the executives who find themselves at the center of the collapse of cryptocurrency firm FTX. And now, it appears both are ready to turn on each other.

This was after Bankman-Fried had suggested that Ellison might be the one to blame for the missing $8 million in customer money.

On the other end, Ellison could be hinting at possibly flopping on her old boyfriend after she hired a new law firm, Wilmer Hale.

Wilmer Hale is among the most politically connected white-collar law firms in the country. It has a reputation for cutting deals with the Manhattan US Attorney’s Office, itself the country’s premier prosecutor of business-related crimes, Reuters reported.

“The scoop in white-collar defense circles is that Ellison is weighing whether to turn on (Bankman-Fried) and looking for a plea,” an unnamed top attorney who has worked in law enforcement stated. “This firm is known to specialize in these deals.”

This is the latest development in the issue that Bankman-Fried and Ellison are facing. The Manhattan US Attorney’s office is working on how to bring criminal charges for those responsible behind the FTX collapse, something that may be the biggest fraud in the industry’s history.

It was in November when FTX filed for bankruptcy after billions in customer funds held in supposedly secure accounts went missing.

As things stand now, Bankman-Fried and Ellison face civil fraud charges from the Securities and Exchange Commission. However, the more serious case comes from federal prosecutors; both Ellison and SBF could face years in jail if charged and convicted.

Prosecutors are investigating whether the FTX customer funds were misappropriated and used to make up losses in an affiliated prop-trading fund known as Alameda Research, the Wall Street Journal reported.