February 4, 2023

Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to criminal charges brought by the U.S. Southern District of New York. The U.S. Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) have filed separate criminal charges.

Caroline Allison, CEO of Alameda, and Gary Wang of FTX plead guilty

U.S. Attorney for the Southern District of New York, Damian Williams said that Caroline Ellison and Gary Wang had been charged “in connection with their role in the fraud that contributed to the collapse of FTX.” Also, Caroline Ellison and Gary Wang are now working with prosecutors investigating the collapse of FTX and Sam Bankman-Fried.


The CFTC charged Alameda CEO Caroline Ellison and FTX co-founder Gary Wang with fraud in a lawsuit against Sam Bankman-Fried and his companies. Previously, CFTC filed fraud charges against Samuel Bankman-Fried, FTX and Alameda for a fraudulent scheme that caused the loss of more than $8 billion in FTX customer deposits.

In addition, the SEC has charged Caroline Ellison and Gary Wang for their roles in a multi-year scheme to defraud equity investors in the crypto trading platform FTX. Ellison and Wang are also working with agencies as part of a settlement.

If the settlement is approved, Caroline Ellison and Gary Wang will give up the money they earned during their terms in FTX and Alameda. In addition, they will be excluded from the “issue, purchase, offer or sale of securities”.

“As part of their deception, we allege that Caroline Ellison and Sam Bankman-Fried plotted to manipulate the price of FTT, an exchange crypto security token that was an integral part of FTX, to prop up the value of their house of cards SEC said. Chairman Gary Gensler.

Meanwhile, Sam Bankman-Fried is now in FBI custody and on his way to New York. A judge in the Bahamas approved the extradition of Sam Bankman-Fried from the Bahamas to the US to face criminal charges over the collapse of FTX. Prosecutors charged Sam Bankman-Fried with eight felonies, including charges of conspiracy, fraud and money laundering. Bankman-Fried is expected to appear in federal court in Manhattan on Thursday.

Read also: Why did Deribit Exchange transfer 10,000 ETH to Alameda Research?

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for quite some time and is currently covering all the latest updates and developments in the crypto industry.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

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