:strip_exif()/i/2004647822.jpeg?fit=%2C&ssl=1)
Caroline Ellison and Zixiao “Gary” Wang have confessed to being involved in fraud at cryptocurrency firm FTX and contributing to the exchange’s failure. Ellison and Wang were both released on bail.
The prime suspect, Ellison, was the CEO of FTX subsidiary Alameda Research and is accused of multiple types of fraud and money laundering. according to the US Department of Justice. For this, the ex-girlfriend of already arrested the CEO of FTX Sam Bankman-Fried a prison sentence of up to 110 years. Alameda Research has received more than $10 billion from cryptocurrency exchange FTX, consisting of investments from the latter’s customers. Here he then reportedly disappeared at least one billion dollars.
Gary Wang is a suspect in many of the same crimes; he has also committed various types of fraud, according to prosecutors, but is not suspected of money laundering. He could receive a maximum prison sentence of 50 years for it. Wang co-founded the FTX cryptocurrency platform together with Bankman-Fried.
Both suspects are cooperating with the investigation, according to the DOJ, so they should receive a lesser prison sentence than described above. Both are currently on $250,000 bail on suspicion.
FTX hit negative headlines in early November after Binance CEO decides to switch to FTX-linked tokens to sell. He did so in response to suspicions that FTX was partnering with Alameda Research and that money was indirectly funneled by the cryptocurrency exchange to that company; something FTX specifically claimed it didn’t do. Subsequently, many customers tried to get their money back, exposing FTX’s lack of liquidity. It the crypto platform collapsed and not long afterwards it became clear that the fraud may have been committed on a large scale.
Statement by US Attorney Damian Williams on the US case against Samuel Bankman-Fried, Caroline Ellison and Gary Wang pic.twitter.com/u1y4cs3Koz
— US Attorney SDNY (@SDNYnews) December 22, 2022
