After the collapse of crypto exchange FTX last month, former CEO Sam Bankman-Fried has been charged for the theft of billions of dollars that belonged to the company’s customers. He has been extradited from The Bahamas after 8 p.m, on Tuesday night, in custody of the F.B.I. The 30-year old is expected to appear, on Thursday, in front of a judge, in New York. Meanwhile, two of his close associates have pleaded guilty to criminal charges placed on them and are cooperating with authorities.
Former CEO Sam Bankman-Fried will appear in a New York Court for what is termed as an arraignment. He will be asked to enter a plea, following which a judge would decide whether he could be granted bail as well the conditions that would apply for the bail.
Caroline Ellison, the CEO of Alameda Research, FTX’s trading affiliate and Gary Wang co-founder of FTX have already pleaded guilty to fraud, according to prosecutors. They are reportedly cooperating with prosecutors.
Unlike SBF’s claim denying the criminality of the recent happenings, both Ellison and Wang have said that he was aware of the diversion of funds.
Ellison has pleaded guilty to seven criminal counts that include wire fraud and money laundering while Wang’s guilty plea is for four criminal counts that include wire fraud as well as securities fraud.
On December 21, Damian Williams, the U.S. attorney for the Southern District of New York told former employees, “If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it.” He added that they were “moving quickly” and that their patience was “not eternal. WebFans are watching.
FTX had mingled its funds with trading firm Alameda Research, without the knowledge of its customers. This led to a withdrawal of funds from the exchange leading to its collapse. The crypto exchange filed for bankruptcy on November 11, the same day Sam Bankman-Fried stepped down as CEO.
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