FTX, Alameda Crisis: Caroline Ellison, Gary Wang Plead Guilty to Fraud

The co-founder of the bankrupt crypto exchange, Gary Wang, and the former chief executive of Alameda Research, Caroline Ellison, pleaded guilty to federal criminal charges that they helped Sam Bankman-Fried orchestrate a years-long scheme to defraud investors in FTX.

This was revealed by the US attorney for New York’s Southern District, Damian Williams.

Statement of US Attorney Damian Williams on US v. Samuel Bankman-Fried, Caroline Ellison, and Gary Wang pic.twitter.com/u1y4cs3Koz

— US Attorney SDNY (@SDNYnews) December 22, 2022

• Williams first confirmed that Ellison and Wanhaveas pled guilty to all the charges filed by the Southern District of New York against the duo in connection with their roles in the frauds that contributed to FTX’s collapse.
• The exact details of the charges have not been revealed yet. Certain reports suggested that Ellison pleaded guilty to seven counts and faces up to 110 years in prison.
• Wang, on the other hand, pleaded guilty to four counts and faces up to 50 years in prison.
• Additionally, the attorney added that Bankman-Fried was in FBI custody and heading back to the United States. The disgraced CEO will appear in court soon.

“Let me reiterate a call I made last week. 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.”

• Separately, the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have hit Ellison and Wang with civil charges.