Breaking: Alameda CEO Caroline, FTX Co-Founder Gary Plead Guilty To CFTC, SEC Charges
Alameda CEO Caroline Ellison, and Gary Wang the FTX co-founder plead guilty to criminal charges, US CFTC and SEC filed charges separately.
Caroline Ellison, former Alameda Research CEO, and FTX cofounder Gary Wang have actually pleaded guilty to criminal charges by the Southern District of New York on early hours of today Thursday 22nd of December 2022. The U.S Security and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) filed criminal charges separately.
U.S Attorney for the Southern District of New York, who goes by the name Damian William said that Gary Wang and Caroline Ellison have been charged, "In connection with their roles in the frauds that contributed to FTX's collapse." Gary Wang and Caroline Ellison are now cooperating with prosecutors who are investigating the collapse of FTX and Sam Bankman-Fried.
The Commodity Futures Trading Commission (CFTC), charged Alameda CEO Caroline and Gary co-founder of FTX with fraud in an action against Sam Bankman Fried, and his companies. Before now, CFTC had filed fraud charges against Samuel Bankman Fried FTX, and Alameda for a fraudulent scheme that caused the loss of over 8 billion dollars in FTX customer deposits.
And, the SEC charged Caroline Ellison and Gary for the roles they played in a mulityear scheme to defraud equity investors in the crypto trading platform FTX. As part of settlement, Wang and Ellison are cooperating with agents.
Assuming that the settlement is approved, Ellison and Wang will give up all the money they made during their terms with FTX, and Alameda. And they will be banned from, "Issuance, purchase, offer, or sale of any securities."