FTX founder Sam Bankman-Fried is squarely in the spotlight following his arrest in the Bahamas, but attention is also focused on the whereabouts of Caroline Ellison, former CEO of Alameda Research, the hedge fund closely affiliated with FTX.
Bankman-Fried, founder of the collapsed cryptocurrency exchange, was arrested Monday following charges from the U.S. Justice Department. On Tuesday the Securities and Exchange Commission charged Bankman-Fried, commonly known as SBF, with committing fraud after raising $1.8 billion from investors.
The links between FTX and Alameda Research are coming under intense scrutiny. The cryptocurrency exchange used customer money to lend billions of dollars to Alameda for risky trades and investments, the Wall Street Journal reports. Citing FTX bankruptcy filings, the Wall Street Journal also reports that Bankman-Fried owned 90% of Alameda Research.
Ellison is a Stanford University graduate who grew up in the suburbs of Boston, the daughter of two MIT economists, according to the Wall Street Journal. After graduation, she worked at quantitative trading firm Jane Street, where she met fellow trader Bankman-Fried.
The 28-year-old was previously in a relationship with Bankman-Fried, reports say.
See Now: FTX founder Sam Bankman-Fried arrested with U.S. set to unseal indictment
Bankman-Fried resigned as FTX CEO on Nov.11, when the crypto exchange and its affiliates filed for bankruptcy. Ellison was subsequently fired from her role at Alameda.
As the shockwaves from FTX’s collapse continue to reverberate, Ellison’s whereabouts have become a topic of interest on social media. Alameda Research is based in Hong Kong, as was FTX until its relocation to the Bahamas in 2021.
“Caroline oh Caroline; wherefore art thou, oh Caroline Ellison,” tweeted one Twitter user on Tuesday.
“Where’s Caroline Ellison right now? @TheJusticeDept care?” tweeted another user.
See Now: SEC charges Sam Bankman-Fried with defrauding investors in now-bankrupt FTX
The former Alameda CEO was reportedly spotted at a Manhattan coffee shop earlier this month, prompting speculation that she may be cooperating with authorities.
Ellison’s last tweet was on Nov. 9.
Bloomberg reports that Ellison has hired Stephanie Avakian, former director of the SEC’s Division of Enforcement, to represent her. Avakian is now chair of the securities and financial services department at law firm WilmerHale.
MarketWatch has reached out to WilmerHale with a request for comment on this story.
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