- SDNY’s Attorney Damian Williams reveals that FTX co-founder Gary Wang and former Alameda CEO Caroline Ellison plead guilty.
- The attorney also revealed that SBF is now in FBI custody awaiting extradition to the U.S.
Former Alameda Research CEO Caroline Ellison, as well as FTX co-founder Gary Wang, have pleaded guilty to charges tied to FTX’s collapse. The development was revealed by Attorney Damian Williams, the U.S. Attorney for the Southern District of New York (SDNY).
In his video statement, Attorney Williams did not specify what the charges they pleaded guilty to are. However, he notes that the charges are in connection to their role in the fraud that contributed to FTX’s collapse. He also added that the two executives are cooperating with prosecutors.
Ilan Graff, a lawyer for Wang, told Reuters that the FTX co-founder has accepted responsibility for his actions. He also takes his obligations as a cooperating witness seriously, Graff added. An attorney for Ellison was yet to respond.
Meanwhile, Williams also gave an update on the status of the disgraced former CEO of FTX Sam Bankman-Fried (SBF). He announced that SBF is now in the custody of the FBI in the Bahamas. He will be transported to the U.S. to stand trial for multiple charges once his extradition processing is complete.
Read more: FTX CEO SBF going to jail, but wants to attack Binance CEO and others from crypto market
The U.S. attorney took the chance to give a stark warning to all other participants in the misconduct committed by FTX and Alameda Research. He said:
“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it. We are moving quickly and our patience is not eternal.”
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
What’s next for the FTX executives?
The latest developments are the culmination of weeks of swift legal proceedings. SBF was arrested earlier this month in the Bahamas after receiving notification that the SDNY had filed criminal charges against him.
The New York Times reports that SBF agreed to extradition voluntarily. This was due to the U.S. agreeing to grant him bail with house arrest. Going by Business Insiders’ coverage, SBF’s charges include two counts of wire fraud conspiracy, two counts of wire fraud, and one count of conspiracy to commit money laundering. SBF could face up to 115 years imprisonment if convicted of all charges.
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Meanwhile, the SEC and the CFTC have also announced charges against Gary Wang, and Caroline Ellison. Both regulators accuse the duo border of colluding with SBF to commit multi-year fraud through FTX and Alameda.
Additionally, the SEC has charged FTX with selling FTT as an unregistered security in a new filing. The complaint is bound to have far-reaching consequences for the crypto industry if it is upheld in court.
