The new verdict in the case, US versus Samuel Bankman-Fried, Caroline Ellison and Gary Wang.
FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison plead guilty to federal fraud charges.
The news was revealed by the United States Attorney for the Southern District of New York (SDNY) Damian Williams on December 22nd through Twitter.
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The verdict was made in the case US versus Samuel Bankman-Fried, Caroline Ellison and Gary Wang.
In the announcement, Damian Williams reminded that FTX’s investigation is “ongoing and moving very quickly.” On top of that, the US Attorney added that December 22nd’s report is not the first and definitely not the last regarding the ongoing fraud case. Damian Williams stated:
I'm announcing that SDNY has filed charges against Caroline Ellison <...> and Gary Wang <...> in connection with their roles in the frauds that contributed to FTX's collapse. Both Ms. Ellison and Mr. Wang have pleaded guilty to those charges and both are cooperating with the SDNY.
Nevertheless, Williams stated that the main actor, in this case, Sam Bankman-Fried, is already in the hands of the Federal Bureau of Investigation (FBI) and is on his way to the United States. In the country, SBF will be transported straight to “the Southern District of New York” to stand before the judge.
On top of that, in his announcement, Damian Williams sent a message to other individuals who participated in FTX’s fraud scheme. The US Attorney highlighted that the patience of US officials is not eternal, and it's now time for other people involved in the case to come forward.
However, it seems that Caroline Ellison may get away from being charged with seven counts. The former Alameda Research CEO is set to make a plea deal with the Office of the United States Attorney for the Southern District of New York. If both parties agree to sign the plea deal, the woman will be prosecuted only for tax violations and released after paying $250,000 bail.
In return, Ellison undertakes to reveal all the information and provide all documents requested by the Office.
It is worth noting that on the same day, The United States Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) charged Ellison and Wang with new fraud charges.
