Two former top executives of Sam Bankman-Fried’s collapsed cryptocurrency trading platform, FTX, have pleaded guilty to federal criminal fraud charges and are cooperating with the prosecution of the former FTX CEO.
The executives are Caroline Ellison, who was the chief executive officer of Sam Bankman-Fried’s crypto hedge fund, Alameda Research, and Gary Wang, a founder of FTX. The Securities and Exchange Commission and the Commodity Futures Trading Commission filed civil fraud charges against Ellison and Wang, adding to the fraud complaints they had previously filed against Bankman-Fried.
Ellison was a close confidant of Bankman-Fried and has been targeted by prosecutors for her role in manipulating FTX’s exchange token, FTT. It was used by Alameda as collateral for its investments.
The guilty pleas and cooperation are seen as major advances in the federal prosecution of Bankman-Fried, who is in U.S. custody after agreeing to be extradited from the Bahamas to face trial in the Southern District of New York.
The federal government has accused Bankman-Fried of carrying out a widespread and ongoing fraud that resulted in the bankruptcy of FTX, following a ban run on the platform. Now, two of his closest advisers are assisting the government in its case against him.
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