- Bankrupt FTX’s Sam Bankman-Frued pleads guilty to federal crime charges.
- Sam Bankman-Fried headed to the US to face charges.
- Chief executive of Alameda Research, Caroline Ellison & Gary Wang, a founder of FTX, has also pleaded guilty.
The bankrupt cryptocurrency exchange FTX founder and trading firm Alameda Research executive, Sam Bankman-Fried pleads guilty to the federal crime charges levelled against him. He is currently heading to the US to face the charges.
Caroline Ellison, chief executive and Gary Wang, founder of FTX, have also pleaded guilty to the federal crime alleged against them.
According to the press release by US SEC, Ellison and Wang are cooperating in the investigation and pros union of Bankman-Fried.
The regulatory bodies, SEC and Commodity Future Trading Commission( CFTC) have a case alleging civil fraud against Ellison and Wang.
Out of the seven offences, two are offences of wire fraud and five are security and commodities fraud alleged against Ellison, alongside money laundering charges. Ellison has pleaded guilty to all the charges.
Gary Wang had pleaded guilty to alleging the offence of wire fraud and conspiracy wire, securities and commodities fraud.
It has been claimed by the SEC that Carline exploited FTX customer deposit funds to support Alameda’s trading activities. Mr WaMrhas have been alleged to have created software to divert funds
Both Ellison and Wang had active participants in the scheme to mislead the FTX’s investors. They were engaged in all the running of FTX which had been crucial to its success.
Moreover, Damian Williams, Attorney Southern District of New York has said that SBF is now in FBI custody and will be produced before the Learned Judge of the Southern District of NY.
Additionally, Gary Gensler, Chair of the SEC has said risks to investors will always remain unless and until crypto firms are willing to comply with the time-tested securities laws of the land.
