FTX's founder is accused of a $1 billion fraud.

On Wednesday night in Nassau, Bahamas, Sam Bankman-Fried, the founder and former CEO of the cryptocurrency exchange FTX, is carried in handcuffs to an aircraft as he is being extradited to the US.

As Sam Bankman-Fried was being brought back to the United States from the Bahamas on Wednesday, a federal prosecutor revealed that two of the crypto entrepreneur's closest friends had secretly entered guilty pleas to criminal charges related to the demise of the cryptocurrency exchange FTX and were now assisting investigators.


Both Gary Wang, the 29-year-old co-founder of FTX, and Caroline Ellison, the 28-year-old former CEO of Bankman-trading Fried's company Alameda Research, pleaded guilty to counts of wire fraud, securities fraud, and commodities fraud.


In a video statement posted to social media on Wednesday night, U.S. Attorney Damian Williams stated, "They are both cooperating with the Southern District of New York."

He continued by urging anyone else who took part in the fraud to contact his office because "our patience is not endless" and more criminal charges against other people could be brought.


On Wednesday night, FTX founder Sam Bankman-Fried will be extradited to the United States.

FTX founder allegedly created a "scheme" to scam investors

As Bankman-Fried was being extradited from the Bahamas by American law enforcement to face charges related to his involvement in FTX's failure, the unexpected guilty pleas were made public. According to media reports, Bankman-airplane Fried's touched down in New York on Wednesday evening. On Thursday, he was scheduled to show up in a federal court in New York City.

U.S. prosecutors hadn't made public Ellison and Wang's probable criminal charges or their agreement to cooperate with investigators prior to Bankman-Fried.


At night, a green hangar and a white aircraft can be seen on a runway.

Sam Bankman-Fried, a co-founder of FTX, is on board a jet taxiing toward the runway in Nassau, Bahamas after being extradited to the US. Following a request from the US government, Bankman-Fried was detained by Bahamian officials last week. (Image: Joe Raedle/Getty) )

It was unclear if Bankman-Fried, who has apologized for FTX's failure but has maintained his innocence of any wrongdoing, was likewise unaware of the situation.

On December 19, Ellison and Wang entered into plea pleas in part to secure the promise that, if they cooperated completely with the investigation, prosecutors would suggest a reduction in their sentences.


Without such a bargain, Ellison, who is also accused of conspiring to launder money, could spend up to 110 years behind bars. Wang might live for 50 years.


released on bail

Following their covert court appearances, both were granted free on $250,000 US bail, with travel to the US mainland only permitted.


Wang's attorney, Ilan Graff, stated, "Gary has accepted responsibility for his deeds and takes seriously his duty as a cooperating witness."


Ellison's attorney did not promptly respond to requests for comment.

The Securities and Exchange Commission claimed Wang and Ellison were "active participants" in Bankman-alleged Fried's plot to defraud FTX investors and con its clients in a separate civil complaint submitted on Wednesday.


FTX's founder is accused of a $1 billion fraud.


Following his arrest in the Bahamas, Samuel Bankman-Fried, the creator of the now-defunct cryptocurrency exchange FTX, has been accused by the US government of a number of financial offenses. If convicted, he may spend decades in prison.

Wang wrote the computer programming that enabled Alameda to steal money from FTX customers. According to the SEC, Ellison subsequently used the stolen money for Alameda's trading activities.

Following a request from the US government, Bankman-Fried was detained by Bahamian officials last week. Prosecutors in the United States claim that he was instrumental in the swift collapse of FTX and concealed its issues from the general public and investors.





According to the SEC and prosecutors, Bankman-Fried stole customer deposits on the FTX platform illegally and used them to fund Alameda's trading, purchase real estate, and give substantial campaign contributions to American politicians.


confronts a life sentence

The 30-year-old might serve the rest of his life in prison.


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