2023-05-22 10:18:37
Caroline Ellison and Gary Wang have pleaded guilty to fraud and say they will work with prosecutors to determine the cause of FTX’s bankruptcy, the US Attorney’s Office said. Ellison, former head of Alameda Research, a cryptocurrency trading firm founded by Bankman-Fried, and Wang, former chief technology officer of FTX, are being charged over their roles in the alleged fraud that allegedly led to the collapse of FTX.
Ellison and Wang’s admission of guilt now increases the pressure on Bankman-Fried. Former US attorney Paul Pelletier says defense attorneys know employees who cooperate early get the best deals from prosecutors. Bankman-Fried was transferred from the Bahamas to the United States on Wednesday to face criminal charges. He has given up his right to contest the transfer, the Bahamas Attorney General’s Office said. If convicted on all eight counts of the US Department of Justice, he faces up to 115 years in prison.
Sam Bankman-Fried is staying at his parents’ home in Palo Alto, California, on $250 million bail until his trial begins. The 30-year-old will also have to surrender his passport and will be placed under close surveillance while he is under house arrest, according to court documents released after Thursday’s hearing in Southern District Court in New York.
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