FTX co-founder Gary Wang and Alameda’s Caroline Ellison plead guilty to criminal charges
Gary Wang, a co-founder of FTX, and Caroline Ellison, of Alameda, both entered guilty pleas to charges.
FTX logo is burnt and broken.
Two significant Sam Bankman-Fried associates were charged with federal criminal offences in the U.S., according to news released late on Wednesday. This is the latest development in the FTX/Alameda saga. Both former Alameda CEO Caroline Ellison and co-founder of FTX Gary Wang entered pleas of guilty to several crimes and agreed to cooperate with ongoing investigations into wrongdoing at FTX/Alameda that prove “serious” in exchange for lower sentences.
Sam Bankman-Fried, who is being sued for fraud by the SEC and CFTC as well as federal criminal accusations, was also extradited to the United States from the Bahamas on Wednesday. During the Southern District of NewAt a press conference last week, York attorney Damian Williams announced the charges and said his office was “not done” filing additional charges. As of right now, we know Ellison and Wang were at least some of the people he was referring to at the time.
Given that they are most likely to have direct and best information that SBF knew of the use of FTX client funds to support Alameda’s dangerous crypto trading wagers, Ellison and Wang are expected to be important witnesses for the government in the SBF prosecution.
Additionally, this may not be the end of charges for those at FTX and Alameda. At the news conference where the allegations against Ellison and Wang were announced, Williams reiterated that if anyone else isNow is the moment to seriously consider coming forward to aid authorities in their prosecution of the case in exchange for potential leniency.
Along with the criminal accusations, the SEC and CFTC also announced civil fines against Ellison and Wang.p