Connect with us

FTX founder Sam Bankman-Fried touches down in New York to face fraud charges


FTX founder Sam Bankman-Fried touches down in New York to face fraud charges


he co-founder of the cryptocurrency exchange FTX touched down in the United States on Wednesday night facing charges of fraud.

Sam Bankman-Fried was extradited from the Bahamas after the spectacular collapse of his business.

As Bankman-Fried (or SBF as he is known) was extradited it emerged two of his top associates have pleaded guilty to criminal charges related to the operation of FTX.

Carolyn Ellison, the 28-year-old former CEO of Alameda Research, a trading firm started by Bankman-Fried, and Gary Wang, the 29-year-old who co-founded FTX, pleaded guilty to charges including wire fraud, securities fraud and commodities fraud.

“They are both cooperating with the Southern District of New York,” U.S. Attorney Damian Williams said Wednesday night in a video statement released on social media.

He added that anyone else who participated in the fraud should reach out to his office because “our patience is not eternal” and further criminal charges against others were possible.

SBF is expected to appear in a federal court in New York City on Thursday.

Before Bankman-Fried was in the air, U.S. prosecutors hadn’t publicly revealed that Ellison and Wang were facing potential criminal charges or that they had pledged to work with investigators.

Bankman-Fried has apologized for FTX’s collapse but denied defrauding anyone.

Ellison and Wang signed plea agreements on December 19, partially in exchange for a promise that prosecutors would recommend a reduction in their sentences if they cooperate fully in the investigation.

Both were released on $250,000 bail after their secret court appearances with travel restricted to the continental United States.

FTX has filed for bankruptcy, leaving many people unable to withdraw funds.

According to a court filing, FTX owed its 50 largest creditors almost $3.1bn (£2.5bn).

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in News

To Top