Home | Breaking | SBF Is On The Hot Seat: Two Of His Long-Time Associates Pleaded Guilty To Fraud

SBF Is On The Hot Seat: Two Of His Long-Time Associates Pleaded Guilty To Fraud

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Former FTX CEO Sam Bankman-Fried has signed his extradition papers, paving the way for him to face criminal charges in the United States. Bankman-Fried landed in the US late Wednesday and two of his long-time associates, Caroline Ellison and Gary Wang have pleaded guilty to fraud.

Sam Bankman-Fried Arrived In The US

According to a statement from Doan Cleare, Acting Commissioner of Corrections at Fox Hill Prison Bankman-Fried had agreed to extradition. Bankman-Fried has been held in the medical unit of Fox Hill Prison since his arrest on Dec. 12. 

After the arrest of Bankman-Fried, US Attorney Damian Williams said that the FTX crisis was the biggest financial fraud in the history of the US. Bankman-Fried arrived in the US late on Wednesday and is expected to appear in Manhattan federal court on Thursday.

Sam Bankman-Fried Will Face Eight Criminal Charges.

The former billionaire is facing charges from the Department of Justice related to wire fraud, conspiracy to commit wire fraud and securities fraud, and violation of campaign finance law. He could face life in prison if convicted of all eight charges of fraud and conspiracy. The longest sentence he could get if convicted of all counts is 115 years.

Authorities from numerous agencies are investigating FTX and its former CEO, including the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and a number of U.S. state regulatory agencies.

FTX and its sister trading house, Alameda, both filed for bankruptcy last month after a liquidity crisis sparked by investors rushing to pull their deposits from the exchange.

FTX’s Gary Wang and Alameda’s Caroline Ellison Plead Guilty to Fraud

Gary Wang, co-founder of FTX, and former Alameda Research CEO Caroline Ellison both pleaded guilty to federal charges in the Southern District of New York.

Wang pleaded guilty to a number of charges, including conspiracy to commit wire fraud, wire fraud, and conspiracy to commit securities fraud. At the same time, Ellison claimed guilty to two counts of wire fraud, two counts of conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.

Ellison and Wang each agreed to plead guilty in exchange for leniency from prosecutors. If they provide substantial assistance to the investigation, prosecutors will recommend reduced sentences.

John Asher

John Asher

I am a crypto-enthusiast that likes to write about the blockchain industry. Mostly, I'm interested in the gaming industry and how it will revolutionize in-game asset ownership.

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