Subscribe to our Telegram channel
Partners of Sam Bankman-Fried face up to 160 years in prison
Sam Bankman-Fried's partners, former Alameda Research chairman Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to 11 charges, including fraud and embezzlement. It is known that Ellison faces up to 110 years in prison, and Wang — 50.
Statement of U.S. Attorney Damian Williams on U.S. v. Samuel Bankman-Fried, Caroline Ellison, and Gary Wang pic.twitter.com/u1y4cs3Koz
— US Attorney SDNY (@SDNYnews) December 22, 2022
In addition to the U.S. Attorney's Office, Caroline Ellison and Gary Wang were accused of defrauding investors by the U.S. Securities and Exchange Commission (SEC). The regulator stated that they were "active participants" in the fraudulent scheme and were "crucial" to its success. Ellison illegally used FTX client funds for Alameda Research, and Wang created a program code that allowed redirecting the assets of cryptocurrency exchange users to the accounts of a trading company.
Until crypto platforms comply with time-tested securities laws, risks to investors will persist. It remains a priority of the SEC to use all of our available tools to bring the industry into compliance. https://t.co/m8oh0gTvc3
— Gary Gensler (@GaryGensler) December 22, 2022
«Until cryptocurrency platforms begin to comply with time-tested securities laws, risks to investors will remain. TheSEC’s priority remains to bring the industry into compliance with the law using all the tools at our disposal,» said SEC Chairman Gary Gensler.
As for the «protagonist» of the FTX collapse, Sam Bankman-Fried, he was extradited to the United States on Wednesday evening. Initially, the ex-head of the platform said he would appeal the extradition, but later, during the court hearing, he agreed to the procedure.
The official indictment accuses Benkman-Fried of defrauding FTX clients since 2019. The ex-billionaire is also suspected of making tens of millions in illegal political donations to protect himself and his business. Earlier, there were rumors that the ex-CEO of FTX bribed US Democrats and that is why he remained at large. If the federal government brings charges of wire or bank fraud against Benkman-Fried, there is a high probability that the entrepreneur will be sentenced to life without the possibility of bail.