U.S. Attorney for the Southern District of New York Damien Williams said in a recorded statement that former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pled guilty to criminal charges.
U.S. Attorney for the Southern District of New York Damien Williams said that former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang had pled guilty to criminal charges.
Williams stated that both Ellison and Wang are collaborating with prosecutors, and he expects to file charges against more persons. However, he also asked those associated with the bankrupt crypto company to come forward before charges are made, stating, “Our tolerance is not infinite.”
Williams continued, “We continue to work around the clock, and we are far from finished.” Sam Bankman-Fried is also now in FBI custody, according to the U.S. attorney.
In addition to filing criminal accusations against the two, the Securities and Exchange Commission and Commodity Futures Trading Commission also filed civil charges against them, saying that they deceived investors. Ellison and Wang are also participating in these investigations; both agencies have noted that Ellison and Wang have reached a settlement.
If the court approves the settlement, both parties would forfeit any profits they gained through FTX and Alameda and be prohibited from engaging in the “issuance, purchase, offer, or sale of any securities,” with the exception of their own retirement and other individual investment accounts.
As part of their deceit, SEC Chair Gary Gensler stated, “we claim that Caroline Ellison and Sam Bankman-Fried schemed to manipulate the price of FTT, an exchange crypto security token that was crucial to FTX, to prop up the value of their house of cards.”
As part of their deception, SEC Chair Gary Gensler stated, “we claim that Caroline Ellison and Sam Bankman-Fried schemed to manipulate the price of FTT, an exchange crypto security token that was crucial to FTX, to prop up the value of their house of cards.”
“We also claim that Ms. Ellison and Mr. Wang actively participated in a conspiracy to misappropriate FTX client funds in order to prop up Alameda and post collateral for margin trading.”
Also Read: India’s RBI Chairman Fears Crypto Might Cause A Financial Disaster
Wallets