US attorney says Caroline Ellison and Gary Wang have plead guilty in FTX collapse

The former officials of FTX & Alameda have been charged for their role in the “scam” that caused FTX’s collapse.

FTX was a popular crypto Exchange & Alameda Research was one of the FTX-affiliated companies. FTX founder & former CEO Sam Bankman-Fried (SBF) was 95% owner of Alameda. Misuse of the FTX customers’ funds resulted in a liquidity crunch on the FTX exchange & further FTX reached a situation of bankruptcy along with its more than 100 affiliated companies.

On 22 Dec, Damian Williams, United States Attorney for the Southern District of New York (SDNY), confirmed that a fraud charge case against former Alameda Research CEO Caroline Ellison & FTX co-founder Gary Wang is going on and it is not going to be last week.

The US attorney further added:

“I’m announcing that SDNY has filed charges against Caroline Ellison (…) and Gary Wang (…) in connection with their roles in the frauds that contributed to FTX’s collapse. Both Ms. Ellison and Mr. Wang have plead guilty to those charges and both are cooperating with the SDNY.”

Williams also confirmed that Sam Bankman-Fried (SBF) is under the custody of the Federal Bureau of Investigation (FBI) and soon he will be shifted to the United States directly in the Southern District of New York.

In the present time, the FTX bankruptcy case is in heat because many crypto companies were depending on FTX’s services and the FTX bankruptcy resulted in the bankruptcy of many good companies. 

The legal experts believe it will take many years to complete the bankruptcy case for this exchange because Exchange was providing services in multiple countries so conflict will arise among multiple countries’ jurisdictions and further that will increase the time to reach an outcome.

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