Former FTX CTO and Alameda CEO Plead Guilty to Fraud Charges over FTX Crypto Price Manipulation

Ellison and Wang are expected to be key witnesses in the case against Sam Bankman-Fried.

Gary Wang, the former CEO of Alameda Research and co-founder of FTX, has pleaded guilty to federal criminal charges in the U.S. for his role in the fraud that contributed to the collapse of the exchange. Caroline Ellison, a former executive at FTX, has also pleaded guilty to multiple charges and accepted a plea agreement that offers reduced sentencing in exchange for assistance in ongoing investigations into wrongdoing at FTX and Alameda.

The charges against Wang and Ellison come after Sam Bankman-Fried, the founder of FTX, was extradited to the U.S. from the Bahamas to face fraud charges by the SEC and CFTC, as well as federal criminal charges. In a press conference announcing the charges, Southern District of New York attorney Damian Williams noted that his office was "not done" in terms of levying additional charges, and it has now been revealed that Ellison and Wang were among those he was referring to.

Ellison and Wang are expected to be key witnesses in the case against Bankman-Fried, as they are likely to have knowledge of his involvement in the use of FTX customer funds to cover Alameda's risky crypto trading bets. Both individuals also face civil penalties from the SEC and CFTC. Williams has also indicated that anyone else who comes forward to assist authorities in the prosecution of the case in exchange for possible leniency will be considered.