Bitcoin exchange FTX news: Directors plead guilty

In the latest major development surrounding the FTX debacle, the former CEO of Alameda Research has pleaded guilty. Caroline Ellison is accused of fraud and is currently cooperating with authorities in their investigation of Sam Bankman-Fried.

Top of FTX and Alameda pleads guilty

The Attorney General in New York, United States, reports that both Ellison of Alameda Research and FTX co-founder Gary Wang have faced serious charges, for which they have now pleaded guilty. They would have acted fraudulently, which ultimately led to the collapse of FTX.

“I announce that the SDNY [de openbaar aanklager in New York, red.] has filed suit against Caroline Ellison and Gary Wang in connection with their role in the fraud that contributed to the demise of FTX. Both Ellison and Wang have pleaded guilty to these charges and both are cooperating with the SDNY.”

Both individuals were closely connected in the day-to-day operations of both FTX and Alameda, two companies that eventually both collapsed. The corporate executives of both companies have received charges from multiple quarters, including from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). Ellison allegedly manipulated the price of FTX token (FTT).

The net is closing in on bitcoin exchange FTX ex-CEO

That the two are now cooperating with the authorities is probably bad news for Sam Bankman-Fried. He was the head of FTX and was also the founder of Alameda. It is likely that the confessions of his accomplices are a bad development for his defense against the charges against him.

SBF is now in the hands of the FBI and has arrived in the United States. The photos below show the moment when SBF is extradited under the supervision of the police.

It is not clear how the case will proceed now. However, it can take a long time before it becomes clear whether there is anything to be gained for creditors at all. There are estimates that customers could get back 40% of their credits.

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