Cryptocurrency News

FTX, Alameda execs plead guilty to fraud charges: Community responds


In the newest update to the FTX saga, former Alameda Research CEO Caroline Ellison and former FTX co-founder Gary Wang plead guilty to fraud charges and are currently helping with the investigation of former FTX CEO Sam Bankman-Fried. As the news broke, crypto community members shared their thoughts on the new development. 

From wondering where customer funds went and ridiculing Ellison’s trading skills to wondering how much insider trading information the executives gave to Shark Tank star Kevin O’Leary, members of the crypto community tweeted various reactions to the executives pleading guilty and turning on Bankman-Fried.

Responding to the story, community members raised important questions. One Twitter user highlighted an urgent inquiry: where is the customers’ money? The community member also asked if the confession will solve this problem or if the money is already gone. 

On the other hand, another Twitter user dragged Kevin O’Leary into the conversation. The user asked how much insider trading information was given to O’Leary in terms of assets being pumped and dumped. According to the community member, they don’t think that Bankman-Fried is “the big fish” but rather simply a “bass swimming in the ocean.”

Meanwhile, another member of the community brought up the recent alleged sightings of Ellison in New York. The Twitter user pointed out that people who saw the photos of Ellison in New York must know that the executive came to the United States under protection.

Potential Caroline Ellison sighting: Twitter

While others are raising serious questions, some took the opportunity to add some humor to the issue. One Twitter user ridiculed Ellison’s trading skills and said that it was the former Alameda CEO’s first time using a stop-loss function. 

Internet detective Stephen Findeisen, more commonly known as Coffeezilla, said that it was “game over” for Bankman-Fried. Additionally, Findeisen pointed out that even though they are apart, Bankman-Fried’s partners found a way to “screw him one last time.”

Related: Alameda’s Caroline Ellison and FTX’s Gary Wang hit with additional fraud charges

Despite all thi, a community member couldn’t help but be cynical about the new development. According to the Twitter user, “nothing serious will happen.” The user is convinced that this whole issue too will disappear like the ocean pipelines exploding, the Las Vegas shootings and Jeffrey Epstein’s island stories.

Meanwhile, Ellison, who is a key witness in the FTX investigation, avoided a potential 110 years in jail through a plea deal with the Office of the United States Attorney for the Southern District of New York. Through this, the former Alameda Research CEO will only be prosecuted for tax violations and could be immediately released by paying $250,000 in bail.