Former FTX and Alameda Research Executives, Wang and Ellison Plead Guilty and are Cooperating with Police

The Verge | Richard Lawler Elizabeth Lopatto | Dec 21, 2022

Unsplash Mariia Shalabaieva FTX - Former FTX and Alameda Research Executives, Wang and Ellison Plead Guilty and are Cooperating with Police

Image: Unsplash/Mariia Shalabaieva

Former FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison are facing up to 50 years and 110 years in prison, respectively.

  • Caroline Ellison and Zixiao “Gary” Wang, two executives in Sam Bankman-Fried’s fallen crypto empire, have pleaded guilty to federal charges and are cooperating with prosecutors. The news was announced late Wednesday by Damian Williams, the US Attorney for the Southern District of New York.
    • Wang was a co-founder of the FTX cryptocurrency exchange and owned 10 percent of Alameda Research. (Bankman-Fried owned the other 90 percent.) Ellison served as CEO of Bankman-Fried’s trading company Alameda Research.
    • Ellison pleaded guilty to seven counts, according to The Washington Post. She faces up to 110 years in prison, WaPo says. Wang pleaded guilty to four counts and faces up to 50 years in prison.

See:  Co-Founder FTX Ryan Salame Blew the Whistle

  • The  US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have already filed updated civil suits, including details on Wang and Ellison’s roles. “Wang, with Ellison’s knowledge and consent, exempted Alameda from the risk mitigation measures” FTX used, providing Alameda Research with a “virtually unlimited ‘line of credit,’” according to the updated SEC complaint.
  • Alameda got ahold of FTX customer funds in two ways: first, by the “line of credit” but also by directing customers to deposit fiat currency into accounts controlled by Alameda. “As a result, there was no meaningful distinction between FTX customer funds and Alameda’s own funds,” the SEC suit says.

Continue to the full article --> here


NCFA Jan 2018 resize - Former FTX and Alameda Research Executives, Wang and Ellison Plead Guilty and are Cooperating with PoliceThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Former FTX and Alameda Research Executives, Wang and Ellison Plead Guilty and are Cooperating with PoliceFF Logo 400 v3 - Former FTX and Alameda Research Executives, Wang and Ellison Plead Guilty and are Cooperating with Policecommunity social impact - Former FTX and Alameda Research Executives, Wang and Ellison Plead Guilty and are Cooperating with Police

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Former FTX and Alameda Research Executives, Wang and Ellison Plead Guilty and are Cooperating with Police




 

Leave a Reply

Your email address will not be published. Required fields are marked *

sixteen − 14 =