The FTX founder wants to face justice in the United States.
(Photo: AP)
Nassau, Frankfurt New trouble for FTX founder Sam Bankman-Fried: Two of his highest-ranking longtime employees, Caroline Ellison and Gary Wang, have pleaded guilty to fraud and have agreed to cooperate with the prosecutor’s office to clarify the background to the bankruptcy. This was announced by the US Attorney’s Office on Wednesday.
Caroline Ellison, the former head of Alameda Research, a crypto trading firm founded by Bankman-Fried, and Gary Wang, the former chief technology officer of FTX, have been accused of their roles in the alleged scam that led to FTX’s collapse. charged.
>>Read here: Interview with FTX founder Sam Bankman-Fried
FTX, once the world’s third-largest trading platform for cryptocurrencies, had to file for bankruptcy protection on November 11 of this year. Bankman-Fried is accused of stealing billions of dollars in customer funds. The US Securities and Exchange Commission said he used the money from investors to buy real estate for himself and his family.
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Ellison and Wang’s admission of guilt now increases the pressure on Bankman-Fried. Defense attorneys know that employees who cooperate early get the best deals from prosecutors, said former US attorney Paul Pelletier.
“When prosecutors credibly communicate to the public that they will reward co-operative employees and prosecute the scammers, company executives take notice,” Pelletier said.
FTX founder Bankman-Fried does not contest extradition to the USA
Ellison, the 28-year-old daughter of a professor, has pleaded guilty to seven counts. Wang, who recently made the Forbes billionaires list, pleaded guilty to four counts, according to prosecutors. Both are free on bail.
FTX bankruptcy: Top executives plead guilty
Meanwhile, Bankman-Fried was extradited from the Bahamas to the United States on Wednesday to face criminal charges. The Attorney General in the Bahamas said he had waived his right to contest the extradition. If convicted on all eight counts of the US Department of Justice, he faces up to 115 years in prison.
The 30-year-old is expected to appear in federal court in Manhattan for the first time on Thursday. His lawyers may try to get him released on bail.
More: FTX bankruptcy trustee Ray testifies before Congress: “No way” he couldn’t have known
First publication: 22.12.2022, 01:28 (last updated: 12:45).