SEC Declares FTX’s FTT Token a Security, Former Execs Plead Guilty

• The U.S. Securities and Exchange Commission (SEC) has called FTX’s FTT exchange token a security.
• Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to criminal fraud charges tied to FTX’s collapse.
• Twitter has integrated cryptocurrency prices into search results using a plug-in from charting platform TradingView.

The cryptocurrency industry was rocked late Wednesday when the U.S. Securities and Exchange Commission (SEC) issued a complaint that FTX’s FTT exchange token was a security. This is the first time the SEC has declared a cryptocurrency token to be a security. The SEC stated that because the FTT was sold as an investment contract, it is a security. The SEC also noted that if demand for trading on the FTX platform increased, the demand for the FTT token could increase and any price increase in FTT would benefit holders of FTT equally and in direct proportion to their FTT holdings.

In addition to the SEC complaint, the U.S. Attorney for the Southern District of New York announced that Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to criminal fraud charges tied to FTX’s collapse. The SEC and Commodity Futures Trading Commission also announced charges against the two, saying Ellison manipulated the price of FTT. The duo are cooperating with investigators and the U.S. Attorney did not specify what they were being charged with.

The news of the SEC complaint and the criminal charges against Ellison and Wang sent shockwaves through the crypto industry. Meanwhile, Twitter has also announced that it has integrated cryptocurrency prices into search results using a plug-in from charting platform TradingView. This integration allows users to type crypto or stock tickers into the search bar to generate the current value and a price chart. The result also includes a link to trading app Robinhood. The social media giant has had several ties to the crypto industry over the past few years, adding a tipping feature in September 2021 while the company was under the management of Jack Dorsey. Since then, Twitter has been taken over by Elon Musk.

The news of the SEC’s complaint and the criminal charges against Ellison and Wang has cast a pall over the crypto industry. The SEC’s action could have far-reaching implications for the industry as a whole, as it sets a precedent for how crypto tokens are viewed by the law. In addition, the criminal charges against Ellison and Wang could have a chilling effect on the industry, as investors may be wary of investing in projects that could be considered illegal. The integration of cryptocurrency prices into Twitter search results, however, is a sign that the industry is still growing and that there is still interest in cryptocurrencies.

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