FTX’s Gary Wang, Alameda’s Caroline Ellison plead guilty to federal charges, cooperating with prosecutors

FTX co-founder Sam Bankman-Fried is escorted out of the Magistrate’s Court on December 21, 2022 in Nassau, Bahamas. 

FTX co- founder Gary Wang pleaded guilty to federal charges in the Southern District of New York, according to the U.S. Attorney.

Wang admitted to conspiracy to commit wire fraud, conspiracy to commit commodities fraud, and conspiracy to commit securities fraud. Ellison pleaded guilty to two counts of wire fraud and two counts of conspiracy to commit wire fraud.

Civil complaints were released against the Commodity Futures Trading Commission.

They were accused of being involved in a multiyear scheme to defraud equity investors in FTX.

Ellison and Wang are charged with fraud and misrepresentation in connection with the sale of digital asset commodities in interstate commerce.

The claims were accepted by Wang and Ellison. Ellison was accused by the SEC of engaging in artificial manipulation of FTX's self-issued token as part of a larger effort to boost Alameda Research's available collateral for lending.

Both Ellison and Wang are cooperating with the agency.

A number of loans from major firms that have now filed for bankruptcy protection were linked to Alameda Research.

Williams didn't say what charges were against Ellison or Wang. According to the SEC, Ellison and Wang aided and abetted Bankman- Fried in his alleged fraud of FTX customers.

Alameda diverted customer funds for its own trades because Wang created a software back door in FTX's platform, according to the SEC. Bankman-Fried was the leader of Alameda until the year 2021, when Ellison took over.

CNBC requested comment from Trabucco, but he did not reply.

Two more people have been charged in connection with the collapse of FTX. Bankman- Fried was indicted in federal court.

The SEC said that Bankman- Fried and Wang gave Alameda and Ellison carte blanche to use FTX customer assets for whatever they wanted. According to the SEC, there was no mention of Trabucco in relation to any wrongdoing.

Wang has accepted responsibility for his actions and takes seriously his obligations as a cooperating witness according to his attorney.

CNBC requested comment from counsel for Ellison. A person within the Bankman-Fried camp wouldn't say anything.

CNBC contributed to the report.