A former top executive at a trading firm that was close to FTX pleaded guilty to criminal charges stemming from the collapse of thecryptocurrencies exchange and apologized.
The transcript of the hearing in which Ellison entered her guilty plea was made public on Friday.
Ms. Ellison ran a trading firm that was co-founded by Sam Bankman-Fried, the disgraced founder of FTX.
Ms. Ellison said that she might be a strong witness against Mr. Bankman- Fried. She said she went along with the decision of Mr. Bankman-Fried and others not to reveal the close relationship between FTX and Alameda.
Ms. Ellison said she agreed with others to borrow billions of dollars from FTX.
FTX is a question. One of the world's largestcryptocurrencies exchanges is now bankrupt. It gave customers the ability to trade digital currency for other digital currency or traditional money. Risky trading options that are not legal in the U.S. were built into the company's business.
Sam Bankman- Fried is a person. He is the founder and former CEO of FTX. He was a major donor to the Democratic Party and was known for his commitment to giving away his wealth in efficient and logical ways.
FTX's troubles began. The chief executive of the world's largest exchange sold his stake in FTX to Mr. Bankman-Fried in exchange for a number of FTT token. Mr. Zhao said in November that he was going to sell the token. The move caused the price of FTT to fall.
FTX's collapse was caused by something. The price went down after Mr. Zhao announced. The company had an $8 billion shortfall due to traders withdrawing. FTX was forced to file for bankruptcy because of a loan offered by its main rival.
Mr. Bankman- Fried was arrested. The Justice Department and Securities and Exchange Commission are looking into whether FTX used customer funds to prop up Alameda Research, a platform that Mr. Bankman- Fried helped start. Mr. Bankman- Fried was arrested in the Bahamas for lying to investors. Civil fraud charges were filed by the S.E.C. the next day.
She apologized to FTX's customers and investors, as well as to Alameda's lenders.
Mr. Bankman-Fried is facing multiple criminal charges stemming from a multiyear scheme that defrauded customers. He is accused of orchestrating a scheme that misappropriated billions in customer deposits, pay down loans, buy lavish real estate, lend money to FTX executives and make tens of millions of dollars in campaign contributions.
After his arrest in the Bahamas, he was extradited to the United States on Wednesday. A federal judge in Manhattan approved Mr. Bankman- Fried's release on Thursday after prosecutors and his legal team negotiated a restrictive bail package that requires him to be confined to his parents' home in Northern California.
On Wednesday night, as Mr. Bankman-Fried was being flown to the United States, Damian Williams, the U.S. attorney for the Southern District of New York, made an announcement.
Mr. Wang entered his plea before Ms. Ellison did. Mr. Wang told the judge that he knew what he was doing was wrong.
The judge said she was recusing herself from future involvement in the case because her husband's law firm did work for FTX. She said that her husband had not been involved in the legal representation, but that she was doing so to avoid any conflict or appearance of one.
Prosecutors were concerned about what would happen if Mr. Bankman-Fried agreed to be extradited from the Bahamas, according to the transcripts.
The same day, Mr. Bankman-Fried was expected to be deported to the US. His lawyer told the court in the Bahamas that his client was not ready to give up his fight to stay in the country.
Mr. Bankman- Fried was taken back to the Fox Hill prison where he had been held.
At 4:30 p.m., Mr. Bankman- Fried was still in the Bahamas, according to the transcript.
The government requested that the transcript of Ms. Ellison's plea be sealed because of uncertainty about when Mr. Bankman- Fried would leave the Bahamas.
Danielle Sassoon, an assistant U.S. attorney, told the judge that there had been some problems in the courtroom.
All Rights Reserved © 2024
