Economics/Class Relations

King and queen of the crypto con may be turning on each other

By New York Post

They were one part of a “Chinese harem polyamory” group set up in the Bahamas that mixed sex, pills and crypto. Now Sam Bankman-Fried and Caroline Ellison, the two executives at the center of the collapse of cryptocurrency firm FTX, appear to be turning on each other.

After Bankman-Fried suggested she might be to blame for a missing $8 billion in customer money, Ellison could be signaling she’s willing to flip on her old boyfriend with the hiring of the law firm Wilmer Hale.

Top white-collar attorneys point out that 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.

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

Ellison’s hiring of Wilmer Hale comes as the Manhattan US Attorney’s office has been scrambling to bring criminal charges against those responsible for what may be the biggest fraud in industry’s history. In early November, the once-popular crypto exchange FTX filed for bankruptcy as billions of customer funds held in supposed secure accounts went missing.

Ellison and SBF also face civil fraud charges from the Securities and Exchange Commission, but the more serious case comes from federal prosecutors; both Ellison and SBF could face years in jail if charged and convicted.

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