FTX’s Gary Wang, Alameda’s Caroline Ellison plead guilty to federal charges, cooperating with prosecutors

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FTX co-founder Sam Bankman-Fried is escorted out of the Magistrate’s Court on December 21, 2022 in Nassau, Bahamas. 

Joe Raedle | Getty Images

FTX co-founder Gary Wang and former Alameda Research co-CEO Caroline Ellison both pleaded guilty to federal charges in the Southern District of New York, U.S. Attorney Damian Williams said in a message Wednesday.

Simultaneously, the Securities and Exchange Commission released a civil complaint against them both, alleging that they were involved “in a multiyear scheme to defraud equity investors in FTX, the crypto trading platform co-founded by Samuel Bankman-Fried and Wang.”

Ellison was singled out in the SEC complaint for engaging in artificial manipulation of FTT, FTX’s self-issued token, as part of a broader effort to boost Alameda Research’s available collateral for lending.

Alameda Research was linked to multiple loans from major crypto firms that have now filed for bankruptcy protection, including Voyager Digital and BlockFi Lending.

Williams did not offer specific details on charges against Ellison or Wang. The SEC alleges that both Ellison and Wang, in their respective roles at Alameda and FTX, abetted Bankman-Fried in allegedly defrauding FTX customers.

Wang’s attorney said in a statement, “Gary has accepted responsibility for his actions and takes seriously his obligations as a cooperating witness.”

Counsel for Ellison did not immediately respond to CNBC’s request for comment.

This is breaking news. Please check back for updates.

CNBC’s Steven Kopack contributed to this report.



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