FTX's two top executives, Caroline Ellison and Gary Wang, plead guilty and will cooperate with prosecutors.
According to a statement by Damian Williams, the prosecutor of the Southern District of New York, former CEO of Alameda Research Caroline Ellison and co-founder and CTO of FTX, Gary Wang, have pleaded guilty and may face up to 110 years and 50 years of imprisonment respectively.
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Two Top Executives Cooperate with Prosecutors
In addition to facing criminal charges, the two individuals also face civil charges from the U.S. Securities and Exchange Commission (SEC). They have begun cooperating with prosecutors on the criminal charges and are expected to bring more charges against individuals related to FTX.
SBF was extradited back to the U.S. from FBI custody in the early morning of 12/22 and is expected to return to the Southern District of New York and appear in court 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
Caroline Ellison Pleads Guilty to Seven Charges, Faces Up to 110 Years
According to legal documents obtained by ABC News, Caroline Ellison pleaded guilty to the following charges, facing a maximum sentence of 110 years in prison:
Wire fraud against FTX users
Wire fraud against Alameda Research lenders
Commodities fraud conspiracy
Securities fraud conspiracy
Money laundering
Gary Wang Pleads Guilty to Four Charges
Gary Wang admitted to wire fraud, commodities fraud, securities fraud, and other charges, facing a maximum sentence of 50 years in prison.
Previous reports indicated that the SEC accused Caroline Ellison and Gary Wang of manipulating and supporting the price of the platform coin FTT under the guidance of SBF.
FTX also withheld crucial information from investors, including misappropriating user funds, redirecting them to undisclosed venture investments, real estate purchases, and making substantial political donations. Those deceived included not only users but also globally renowned institutional investors such as BlackRock, Sequoia Capital, and the Ontario Teachers' Pension Plan.