FTX’s Gary Wang and Alameda’s Caroline Ellison pleaded guilty to federal charges after working with prosecutors

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

one plead guilty Wire fraud collusion, wire fraud, commodity fraud collusion, securities fraud collusion.Ellison plead guilty 2 wire fraud, 2 wire fraud collusion, commodity fraud collusion, securities fraud collusion, money laundering collusion.

The indictment comes from the same prosecutor who accepted the plea bargain from Ellison and Wan, who was released the same night that former FTX CEO Sam Bankman-Fried was en route to New York from the Bahamas. They are facing federal criminal charges.

“As I said last week, this investigation is very much ongoing,” Williams said in a pre-recorded message.

“I also said last week’s announcement wouldn’t be our last. And let me be clear again. Neither is today.

Bankman-Fried is arrested last week Follow him in the Bahamas prosecution in the Southern District of New York.he spent the last few days be embroiled in a controversial court hearing on whether he will accept extradition to the United States

At the same time, the Commodity Futures Trading Commission and Securities and Exchange Commission filed a civil lawsuit against them.

The SEC claimed they were involved in a “multi-year scheme to defraud equity investors in FTX, a crypto trading platform co-founded by Samuel Bankman Freed and Wang.”

The CFTC’s expanded complaint “indicts Ellison for fraud and material misrepresentation related to the sale of digital asset products in interstate commerce, and indicts Wang for fraud related to the sale of digital asset products in interstate commerce. I will.

Wang and Ellison accepted the allegations against them, the CFTC statement said. Ellison was named in the SEC complaint for his involvement in manipulative manipulation. FTTis FTX’s self-issued token and part of Alameda Research’s broader effort to increase lendable collateral.

The SEC said both Ellison and Wang are cooperating with the SEC’s ongoing investigation.

Alameda Research was linked to multiple loans from major crypto companies that are currently filing for bankruptcy protection. voyager digital When BlockFi Lending.

Williams did not provide specific details about the charges against Ellison or Wan. The SEC alleges that both Ellison and Wang, in their respective roles at Alameda and FTX, are aiding Bankman-Fried to defraud FTX customers.

The SEC said that Wang Software backdoor FTX’s platform has allowed Alameda to divert client funds into its own trading. Alameda was led by Bankman Freed until 2021 when Ellison took control with Sam Trabucco leaving Alameda in August 2022.

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

Ellison, 28, and Wang, 29, become the second and third individuals charged in connection with the multi-billion dollar collapse of FTX. His Bankman-Fried, 30, was indicted in federal court earlier this month.

“Bankman-Fried and Wang have granted Alameda and Ellison discretionary powers to use FTX client assets for Alameda’s trading operations and for other purposes that Bankman-Freed and Ellison deem appropriate,” the SEC said. Stated. Trabucco, who joined Alameda “circa 2019,” was not mentioned in connection with any wrongdoing, according to the SEC.

“Gary accepts responsibility for his actions and takes seriously his duties as a co-witness,” Wang’s attorney said in a statement.

A lawyer for Ellison did not immediately respond to CNBC’s request for comment. A spokeswoman for the Bankman-Fried campaign declined to comment.

— CNBC’s Stephen Copac, Daniel Mangan, and Brian Schwartz contributed to this report.