Collapse and bankruptcy of the FTX crypto platform: the million-dollar bail that its former CEO must pay to avoid being imprisoned Code List

The founder and former CEO of FTX when entering a platform in Manhattan, this morning (REUTERS / Jeenah Moon)

The founder of FTX, Sam Bankman-friedwent to a US court for an initial appearance after being extradited from the Bahamas to face fraud charges, the first step in what could be a lengthy criminal case over the collapse of the bankrupt cryptocurrency exchange.

At the Manhattan federal court appearance, known as an “arraignment,” Bankman-Fried was not asked to plead guilty, but was asked to post $250 million bail.

Prosecutors accuse him of stealing billions of dollars in funds from FTX clients to cover losses from his hedge fund, Alameda Research. The judge could also decide whether he will grant you bail and, if so, under what conditions.

Bankman-Fried, 30, was arrested last week in the Bahamas, where he lived and where FTX is headquartered. On Wednesday night he left the Caribbean country in FBI custody.

Bankman-Fried arrived just as two of his former associates said they were cooperating with prosecutors.

The revelation that carolina ellison Y gary wang They had pleaded guilty to fraud and were collaborating with federal officials investigating the bankruptcy of the cryptocurrency exchange, which is an ominous sign for Bankman-Fried, who faces an eight-count indictment in New York.

US authorities are conducting a broad investigation into last month’s spectacular collapse of FTX, once one of the world’s largest cryptocurrency exchanges, and the closely connected trading company Alameda Research. The announcement that Ellison and Wang have pleaded guilty increases the pressure on Bankman-Fried and other executives who have not yet been charged.

Caroline Ellison, Partner at Sam Bankman-Fried and former CEO of Alameda Research
Caroline Ellison, Partner at Sam Bankman-Fried and former CEO of Alameda Research

“Let me reiterate a call I made last week,” he said in a statement. damian williams, Attorney for the Southern District of New York. “If he committed misconduct at FTX or Alameda, now is the time to move on. We are moving quickly and our patience is not eternal.

Ilan GraffWang’s lawyer said his client “has accepted responsibility for his actions and takes his obligations as a cooperating witness seriously.”

former federal prosecutor Paul Pelletier said guilty pleas are bad news for Bankman-Fried. Pelletier noted that defense attorneys know that cooperative employees quickly get the best deals from prosecutors.

“When prosecutors credibly convey to the public that they are going to reward those who cooperate and go after fraudsters, that is when company executives pay attention,” he said.

Ellison, 28, the daughter of a teacher, pleaded guilty to seven charges. Wang pleaded guilty to four, according to prosecutors. Both were released on bail.

Ellison and Wang’s plea agreements stipulate that prosecutors will recommend reduced sentences if they provide “substantial assistance” to the investigation.

gary wang
gary wang

Bankman-Fried was the face of FTX and its extensive business network. He appeared on stages around the world flanked by politicians, celebrities and athletes, promoting FTX and cryptocurrency in general.

The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which has been investigating the FTX collapse, also sued Wang and Ellison on Wednesday.

Both regulators asserted in separate court briefs that Wang and Ellison were not contesting their liability and had accepted rulings that, among other things, would bar them from trading in securities, commodities or crypto assets, or from serving as directors or managers of a company that did so. manufacture. Financial penalties have not yet been determined.

The SEC alleged that Ellison and Wang engaged in a multi-year scheme to defraud FTX investors. Between 2019 and 2022, Ellison, at the direction of Bankman-Fried, manipulated the price of FTX’s native FTT token by purchasing large quantities on the open market, according to the SEC complaint.

With information from Reuters and Bloomberg

Keep reading:

Gas Plan 4 and 5: the Government highlighted that it will allow savings in subsidies of USD 19,500 million in five years

The AFIP intimidated more than 300 taxpayers who did not declare income outside the country during 2019

The Argentine Airlines World Championship ends with record sales and passengers transported

Leave a Comment