Two partners of the founder of the crypto exchange FTX pleaded guilty to fraud
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Attorney for the Southern District of New York Damian Williams informed on Wednesday evening, December 21, that two colleagues and partners of the founder of the bankrupt crypto exchange FTX Group, Sam Bankman-Fried, pleaded guilty in a fraud case. We are talking about FTX co-founder Gary Wan and former CEO of Alameda Research Caroline Ellison. Both are cooperating with the investigation.
Trading firm Alameda Research, another company founded by Mr. Bankman-Fried, is at the center of scandal from the very beginning. Then it turned out that Alameda has no cash, and most of its capital is FTX tokens and other cryptocurrency projects of Mr. Bankman-Fried. Shortly thereafter, FTX’s own liquidity problems became known, the company went bankrupt with a bang, and an investigation began against its management. Now, Ms. Ellison and Mr. Wang have pleaded guilty to defrauding investors and being involved in “the fraud that led to the collapse of FTX.”
Mr. Bankman-Fried himself was arrested last week in the Bahamas at the request of the United States. American authorities charged him in deceiving FTX investors, who invested about $1.8 billion in the cryptocurrency exchange. On Wednesday, he was extradited in the United States, where he is to stand trial.
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