Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to seven counts related to the FTX collapse, which carry a maximum sentence of 110 years in prison. According to a statement by U.S. Attorney Damian Williams on Wednesday night,
While the Faculty OfficeUS Securities and Exchange Commission (SEC) and The Commodity Futures Trading Commission (CFTC) has also announced additional charges against the two. Allegedly, Ellison misrepresented the price of FTT, the FTX-issued token at the behest of founder Sam Bankman-Fried.
FTX founder Sam Bankman-Fried was charged with the Southern District of New York (SDNY) earlier this month. including money laundering, securities fraud He is being extradited to the United States, with Williams confirming that the founder of FTX is in FBI custody and will appear in court. “as soon as possible”
Sanjay Wadhwa, the SEC’s deputy director of law enforcement, said the three were “contributors to key cover-ups from FTX investors, as well as efforts by Mr. Bankman-Fried and Ms. Ellison to increase the value of cryptocurrencies.” The FTT, acting as collateral for the credit, which Alameda withdrew from FTX on an undisclosed and uncapped credit line.”
“Defendants misappropriated FTX’s client funds to Alameda and hid the real risks faced by FTX’s investors and clients,” Wadhwa said.
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