FTX executives have pleaded guilty to fraud and are cooperating with prosecutors Damian Williams, the US Attorney for the Southern District of New York, said that the pair were convicted for their roles in the fraud that contributed to the collapse of FTX.
Ellison, the former CEO of FTX sister company Alameda Research and an ex-girlfriend of Bankman-Fried, pleaded guilty to seven counts and faces up to a century in prison. Wang is facing 50 years in prison after pleading guilty to four counts. Lighter sentences are possible depending on the level of cooperation. Both the Securities and Exchange Commission and Commodity Future Trading Commission have civil fraud charges against them. They were released on bond.
As Bankman-Fried was being extradited from the Bahamas to New York, it was announced. Wang has accepted responsibility for his actions and takes seriously his obligations as a cooperating witness according to his lawyer.
The SEC's case against Ellison and Wang was very strong. The SEC said that Mr. Bankman- Fried, Ms. Ellison, and Mr. Wang were involved in a scheme to hide information from FTX investors. The defendants hid the real risks that FTX's investors and customers faced.
Bankman-Fried is accused of many misdeeds by multiple agencies. Multiple counts of wire fraud, conspiracy to defraud investors, and swindling customer funds are included. Bankman-Fried and his associates took hundreds of millions of dollars in loans from Alameda, which they used to purchase real estate and make political donations, according to the Commodity Futures Trading Commission.
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