Breaking: Caroline Ellison and Gary Wang have pleaded guilty to fraud charges

Former FTX and Alameda Research executives have been accused of participating in the "frauds" that caused FTX to fail.

The charges

In the criminal case against Sam Bankman-Fried, the former CEO of FTX, former Alameda Research CEO Caroline Ellison, and FTX co-founder Gary Wang all entered guilty pleas to federal fraud charges. The statement was made on December 22 by Damian Williams, United States Attorney for the Southern District of New York (SDNY) (1), who emphasized that the most recent significant discovery is not likely to be the last. This inquiry is underway and proceeding swiftly, as mentioned last week. He added that the announcement from last week wouldn't be the final.

What happens next?

It was announced that SDNY had charged Caroline Ellison and Gary Wang for their alleged involvement in the scams that led to the demise of FTX. Mr. Wang and Ms. Ellison both entered guilty pleas to those counts and are working with the SDNY. SBF is currently in the custody of the Federal Bureau of Investigation (FBI), according to Williams, who also stated that he is on his way back to the United States and would be taken immediately to the Southern District of New York to make an as soon as a possible court appearance.

In addition, Williams used the message to issue a strong warning to anyone who may have taken part in infractions at FTX or Alameda. SBF renounced his right to a formal extradition procedure that may have taken weeks and, as a result, was officially transferred from Bahamian custody to U.S. authorities on December 21 (2). According to his attorney, SBF wants to move the case through quickly because he is now determined to put the consumers right. Given that she was seen on Dec. 5 at a coffee shop not far from the New York FBI office and the U.S. Attorney's Office, Ellison's subsequent guilty plea and cooperation with the SDNY may not shock some.