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December 22, 2022

FTX Debacle: Two Top-Level Insiders Cooperating With Prosecutors in Criminal Case Against Sam Bankman-Fried

By Mehron Rokhy

Two top-level executives of the former FTX crypto empire are cooperating with authorities in the criminal case against Sam Bankman-Fried.

According to a recent statement made by the U.S. Attorney of New York’s Southern District Damien Williams, Caroline Ellison, a former executive of trading firm Alameda Research and Gary Wang, the co-founder of FTX, will help build a case against Bankman-Fried.

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“The Southern District of New York has filed charges against Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, the co-founder of FTX, for their roles in the frauds that led to FTX’s collapse. Both Mrs. Ellison and Mr. Wang have pleaded guilty to those charges and they are both cooperating with the Southern District of New York.”

According to recent court documents, Ellison has agreed to provide investigators with key inside information, including handing over relevant documents, giving crucial eye-witness testimony, and fully disclosing the extent of her crimes as well as the crimes of the other defendants.

“It is understood that the defendant (a) shall truthfully and completely disclose all information regarding all matters about which this Office requires, which can be used for any purpose; (b) shall cooperate fully with this Office, the FBI, and other law enforcement…

(c) shall attend all meetings requested by this Office’ (d) shall provide to this Office, upon request, any document, record, or other tangible evidence relating to the matters…(e) shall truthfully testify before the grand jury and at any trial or other court proceeding…”

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Bankman-Fried is accused of fraud, mishandling customer funds, and making inappropriate campaign contributions in connection with FTX’s multibillion-dollar collapse. The firm initially filed for bankruptcy last month after its native asset collapsed and the crypto exchange was forced to halt customer withdrawals.

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Featured Image: Shutterstock/Rick_Jo