Caroline Ellison and Gary Wang want to work with the prosecutor to clarify the background of the bankruptcy. Crypto exchange founder Sam Bankman-Fried is extradited to the United States from the Bahamas.
The noose around fraud suspect founder and former CEO of now-bankrupt crypto exchange FTX, Sam Bankman-Fried, continues to tighten. Two top executives pleaded guilty to fraud in connection with the bankruptcy, US Attorneys said on Wednesday. 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.
“Both Ms. Ellison and Mr. Wang have pleaded guilty to these charges and are both cooperating with the Southern District of New York,” U.S. Attorney for the Southern District of New York Damian Williams said in the video statement. The US Securities and Exchange Commission and the Commodity Futures Trading Commission have also announced separate lawsuits against Wang and Ellison.
Sam Bankman-Fried is expected in Manhattan on Thursday
The announcement comes just hours after FTX co-founder Sam Bankman-Fried, who was arrested in the Bahamas last week, agreed to be extradited to the US to face multiple criminal charges. He boarded a private plane with FBI agents on Wednesday evening, which took off for New York. Bankman-Fried is expected to appear in federal court in Manhattan on Thursday.
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.