Former Alameda CEO Caroline Ellison Pleads GUILTY To FEDS

By Anthony • December 22, 2022 7:38 am • Comments

It appears SBF’s ex-girlfriend and business partner Caroline Ellison is turning on him.

The former CEO of Alameda Research, Caroline Ellison, and the co-founder of FTX, Gary Wang, have been charged with federal crimes for their alleged involvement in a fraud scheme that contributed to the collapse of the cryptocurrency exchange, according to prosecutors.

U.S. Attorney for the Southern District of New York, Damian Williams, stated that both Ellison and Wang have already admitted their guilt and are now cooperating with the investigation.

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Williams also urged anyone else who may have been involved in the fraudulent activities within FTX and Alameda to come forward, stating “now is the time to get ahead of it. We are moving quickly, and our patience is not eternal.”

Here’s the announcement:

NBC dropped these details:

Two of Sam Bankman-Fried’s top business partners — a co-founder of the cryptocurrency exchange FTX and the former CEO of the hedge fund Alameda Research — have pleaded guilty to fraud, a federal prosecutor in New York said Wednesday.

Former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang are cooperating with prosecutors, the U.S. attorney for Southern New York said in a video statement.

Ellison and Wang were charged “in connection with their roles in the frauds that contributed to FTX’s collapse,” U.S. Attorney Damian Williams said.

A plea agreement for the criminal charges shows seven counts for Ellison, including wire fraud and conspiracy to commit securities fraud and money laundering. In Wang’s case, the plea agreement list four charges, including wire fraud and conspiracy counts.

Ilan Graff, an attorney for Wang, said in an email Wednesday: “Gary has accepted responsibility for his actions and takes seriously his obligations as a cooperating witness.”

CNN added these details:

Two senior executives associated with collapsed crypto exchange FTX have pleaded guilty to multiple criminal charges and are cooperating with federal prosecutors, according to unsealed court records. Additionally, the pair face civil fraud charges from the Securities and Exchange Commission that were announced Wednesday night.

Gary Wang, the co-founder of FTX, and Caroline Ellison, who served as CEO of the hedge fund Alameda Research, pleaded guilty to multiple counts of conspiracy and fraud for their roles in the fraud scheme that led to the collapse of the crypto-trading platform.

Damian Williams, the US attorney for the Southern District of New York, announced the charges in a video message Wednesday night. In a brief statement, he reiterated that the investigation is still ongoing, noting specifically that these new charges in the case are not the last.

Ilan Graff, an attorney for Wang, said: “Gary has accepted responsibility for his actions and takes seriously his obligations as a cooperating witness.” Wang has already appeared in court for his guilty plea.

Ellison’s attorneys could not be immediately reached for comment.

The charges were unsealed as Sam Bankman-Fried was enroute to the United States from the Bahamas, where he was arrested last week on an eight-count indictment for what Williams called one of the largest financial frauds in American history. Bankman-Fried waived his right to contest extradition on Wednesday and boarded a plane for the United States in the early evening.

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