FTX Co-Founder And Former CEO Plead Guilty To Fraud As The FBI Arrests SBF
The latest updates from the FTX lawsuit are dripping fast. The recent development in the case indicates that co-founder Gary Wang and former CEO of Alameda Caroline Ellison have been charged with fraud cases, as well as pleaded guilty, and are currently cooperating with police officials.
It came from Damian Williams, that both of these individuals have pleaded guilty to the charges made by the Southern District of New York. He included that anyone who is involved in a fraud case should report it as soon as possible as they will find out one way or another.
Although Damian has not mentioned the charges on the two of Sam Bankman’s top associates, as per the signed agreements Ellison could face up to 110 years in prison for money laundering, and conspiracy charges and wang could get 50 years of jail time if they do not corporate with the investigations. Yet, they have released on bail after each of them signed bonds worth $250,000.
What Are The Charges Against Them?
According to the charge sheet, it is clear that Ellison and Wang were active participants in FTX’s fraud case that looted money from its investors.
It alleges that Wang was responsible for creating software that allowed Alameda to divert FTX customer funds, on other hand, Ellison misused these funds for Alameda’s trading activities.
The three of these cons were involved together from the beginning itself. As Alameda and FTX could not make customers satisfied, they directed hundreds of millions of funds from FTX customers to Alameda enabling its trading, which was used to buy real estate and donated to U.S politicians to run huge campaigns.
The founder of the FTX Sam Bankman is currently held in Bahama’s fox hill prison, where he was denied bail initially and later transferred to the United States. William stated that Sam Bankman is on the way to the US.
Rumors have begun to speculate that things began to heat as Caroline Elison could turn back on Sam Bankman after she hired Stephanie Avakian as her lawyer for the case.
In addition to that, the former federal prosecutor expressed that it is a strong incentive, for someone like Ellison who has been facing charges for decades or more in prison, to cooperate with the officials. She also added that it is not something new and she could do it to save herself from those charges.
Maybe this could be the reason why Sam Bankman is surrendering himself to ease the process, instead of fighting against it. As his both associates have pleaded guilty and cooperated with officials. Many reporters have witnessed Sam bank man leaving the state.
The FTX founder was one of the billionaires in the world, donating his wealth mostly towards left-wing political campaigns and causes. The FTX became the second-largest cryptocurrency exchange in the world.
>Related: FTX Founder Sam Bankman-Fried Arrested: Criminal Charges Are Filed Against Him
Sam Bankman had an estimated net worth of around $32 billion, and now currently faces eight court cases that allege he, was involved in defrauding FTX customers and using Alameda funds to make illegal transactions for his benefit and making a donation to both democratic and republicans in the united states.
The Bankman has not yet pleaded guilty yet, but considering the pleas made by Ellison and wang, the FTX founder could face 115 years of jail time. However, this tenure is not fixed as a stone, as it could change as per the court proceedings.
In addition, Sam Bankman had claimed that it was not intentional to misplace and use the FTX customer’s funds and he believes that the customers eventually will move on.
Apart from all these, the new CEO of FTX John Ray is struggling in the turmoil of taking the company through bankruptcy and has expressed his perspective that they will never get those assets back.
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