Crypto Bust – FTX Top Executives Back Off Bankman Fried – Economy

Things are getting tight for the founder and former head of the now-bankrupt crypto exchange FTX, Sam Bankman-Fried. Bankman-Fried is suspected of fraud. In connection with the bankruptcy, two top managers have now pleaded guilty to fraud, the US Attorney said. Caroline Ellison, the former head of Alameda Research, and Gary Wang, the former chief technology officer of FTX, have been charged over their role in the alleged fraud that is said to have led to the collapse of FTX. Both stated that they would work with the public prosecutor to clarify the background of the bankruptcy.

A court spokeswoman told the dpa that Bankman-Fried is expected to appear before the federal Southern District Court in New York on Thursday afternoon (local time). The 30-year-old has waived his right to contest the extradition, the Attorney General of the Caribbean state announced on Wednesday. Bankman-Fried was arrested on December 12 at the request of US authorities in the Bahamas. In the United States, he faces a long prison sentence.

The US Securities and Exchange Commission has accused the financial manager of fraud. The agency accuses Bankman-Fried of misleading investors with false promises and embezzling their funds. It’s about more than 1.8 billion US dollars (more than 1.7 billion euros).

Bankman-Fried himself was extradited from the Bahamas to the United States on Wednesday. FTX filed for bankruptcy protection on Nov. 11 after clients withdrew funds en masse in response to the covert move of $10 billion in deposits. Bankman-Fried resigned as boss the same day. He has apologized to customers but denied allegations of fraud. The collapse of FTX has rocked the crypto world.

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