FTX case more and more defendants plead guilty
2022.12.22 08:08
FTX case more and more defendants plead guilty
Budrigannews.com – Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, the co-founder of FTX, have agreed to cooperate with the Justice Department’s investigation into Sam Bankman-Fried, the former CEO of FTX.
On December 22, United States Attorney Damian Williams for the Southern District of New York (SDNY) made the announcement, stressing that this latest significant development is unlikely to be the last.
“This investigation is ongoing and moving very quickly, as I stated last week. I also said that the announcement we made last week would not be our last, and let me be clear, today’s announcement is not either,” he said, adding that:
“I’m announcing that SDNY has filed charges against Caroline Ellison […] and Gary Wang […] in connection with their roles in the frauds that contributed to FTX’s collapse. Both Ms. Ellison and Mr. Wang have plead guilty to those charges and both are cooperating with the SDNY.”
Williams also confirmed that the Federal Bureau of Investigation (FBI) currently has custody of SBF and that he is “on his way back to the United States,” where he will be transported directly to the Southern District of New York to appear before a judge “as soon as possible.”
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
In addition, Williams used the statement to issue a clear warning to anyone who might have been involved 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.”
The Securities and Exchange Commission of the United States made a separate announcement on December 21 that it had charged Ellison and Wang for their roles in a “multiyear scheme to defraud equity investors in FTX,” and that it was also looking into other entities and individuals related to the misconduct.
The Securities and Exchange Commission noted that Wang and Ellison are also cooperating with its ongoing investigations.
More Caroline Ellison from FTX involved in fraud case
SBF waived his right to a formal extradition procedure that could have taken weeks and was officially handed over to U.S. authorities on December 21. His attorney said that because SBF wants to “put the customers right,” he wanted to speed up the process.
In the meantime, some may not be surprised by Ellison’s recent cooperation with the SDNY and guilty plea, given that she was reportedly seen on Dec. 5 at a coffee shop near the U.S. Attorney’s Office and the New York FBI office.
