Caroline Ellison and Gary Wang pleaded guilty to fraud charges and are cooperating with the U.S. government investigation into FTX ex-CEO Sam Bankman-Fried.
Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to federal fraud charges. Damian Williams, Attorney for the Southern District of New York (SDNY), made the announcement. He specified that separate charges were filed against former SBF’s colleagues by SDNY in relation “to their roles in the fraud that contributed to FTX’s collapse.”
Williams also revealed in a statement that former FTX Group executives were cooperating with the Justice Department’s investigation into Sam Bankman-Fried, FTX ex-CEO. Williams noted that the investigation was moving very quickly, and more allegations should be expected in the near future.
Additionally, a separate lawsuit against Wang and Ellison was brought by the U.S. Securities and Exchange Commission (SEC), accusing them of years of defrauding FTX’s investors and other misconduct. SEC’s press release pointed out that the two former FTX executives were also cooperating with the agency’s investigation.
Meanwhile, Sam Bankman-Fried signed an agreement for expedited extradition to the United States, as reported by major U.S. media outlets, citing Bahamas Acting Commissioner of Corrections Doan Cleare. Damian Williams clarified that SBF had been in Federal Bureau of Investigation (FBI) custody since December 21 “on his way back to the United States.” SBF will be taken to the Southern District of New York to “appear in court before a judge as soon as possible.”
The New York Times reported that SBF’s lawyers were in talks with federal prosecutors about whether their client could be released on bail following his extradition to the United States. Recall that in mid-December, SBF was arrested in the Bahamas and charged by federal prosecutors, the SEC, and the CFTC, after which his extradition to the United States became a matter of time.
