By 
FTX co-founder, Gary Wang, and Former Alameda Research CEO, Caroline Ellison have pleaded guilty to fraud.
This development was announced by the United States Attorney for the Southern District of New York (SDNY) Damian Williams.
In a statement issued on Thursday (December 22, 2022), Williams said that “the southern District of New York has filed charges against Caroline Ellison and Gary Wang in connection with their involvement in the fraud that contributed to FTX’s collapse.
“Both have pleaded guilty to the charges and are cooperating with the Southern District of New York.”
William also confirmed that Sam Bankman-Fried was in FBI custody.
“He will be transported directly to Southern District New York and will appearing court before a judge in this court as soon as possible,” he said.
He also issued a strong warning to any person who is guilty of any misconduct at either FTX or Alameda.
“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,” he said.
Reports indicate that the United States Securities and Exchange Commission has earlier charged Ellison and Wang for their participation in a “multiyear scheme to defraud equity investors in FTX,”.
The SEC said that the two are also being investigated for violating securities law.
Comments