The FTX collapse escalated with the former CEO Sam Bankman-Fried (SBF) going to jail in the Bahamas. Now it seems that other involved people will face criminal charges. FTX’s co-founder, Gary Wang, and former Alameda Research CEO, Caroline Ellison, both pleaded guilty.
Statement of U.S. Attorney Damian Williams on U.S. v. Samuel Bankman-Fried, Caroline Ellison, and Gary Wang pic.twitter.com/u1y4cs3Koz
— US Attorney SDNY (@SDNYnews) December 22, 2022
All pleaded guilty
SBF is being extradited from the Bahamas to the US, and his former coworkers are collaborating in the ongoing investigation. US Attorney Damian Williams confirmed that Gary Wang and Caroline Ellison pleaded guilty in the Southern District of New York.
“If you participated in misconduct at FTX or Alameda, now it’s time to get ahead of it. We’re moving quickly, and our patience is not eternal,” Williams said in the video.
Allegedly, Ellison pleaded guilty to seven charges. These include wire fraud on FTX customers, conspiracy to commit wire fraud on FTX customers, wire fraud on lenders of Alameda, and wire fraud on lenders of Alameda.
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Moreover, Ellison pleaded guilty to commodities fraud, securities fraud, and money laundering conspiracies. Reportedly, Ellison could face up to 110 years in prison.
Wang pleaded guilty to “only” four counts, including wire fraud on customers of FTX, conspiracy to commit wire fraud on customers of FTX, conspiracy to commit commodities fraud, and conspiracy to commit securities fraud. He could be facing a total of 50 years in prison.
Final thoughts
FTX and Alameda were active in many malicious practices, resulting in a multi-billion dollar fraud. From mishandling customers’ funds to artificially increasing the value of FTX’s native token (FTT), they’ve done it all. And it looks like justice is finally being served.
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