FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison have pleaded guilty to criminal charges brought by the US Southern District of New York. Separate criminal charges were filed by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
Caroline Allison, CEO of Alameda, and Gary Wang, CEO of FTX, both plead guilty.
U.S. Attorney for the Southern District of New York Damian Williams said Caroline Ellison and Gary Wang had been charged “for their involvement in the frauds that contributed to the collapse of FTX.” Prosecutors are also investigating the FTX collapse and the disappearance of Sam Bankman, and Fried’s and Caroline Ellison, as well as Gary Wang, are assisting them.
According to the CFTC, Alameda CEO Caroline Ellison and FTX co-founder Gary Wang were both charged with fraud against Sam Bankman-Fried and his companies. In the past, the CFTC filed fraud charges against Samuel Bankman-Fried, FTX, and Alameda for a fraudulent scheme that resulted in over $8 billion being lost to FTX customers.
Furthermore, Caroline Ellison and Gary Wang were charged with the SEC for their involvement in a multiyear scheme to defraud equity investors in FTX, a popular crypto trading platform. As part of a settlement, Ellison and Wang are also cooperating with agencies.
Caroline Ellison and Gary Wang will give up money made during their terms at FTX and Alameda if the settlement is approved. The prohibition includes their “issuance, purchase, offer, and sale of any securities.”
“As part of their deception, Caroline Ellison and Sam Bankman-Fried allegedly conspired to manipulate the price of FTT, an exchange crypto security token that was integral to FTX.”, in order to maintain the value of their false house,” Gensler said.