Sam Bankman-Fried, the creator of FTX, being held by the FBI, boarded an aircraft on Wednesday for the United States in order to face charges of fraud. It was revealed by federal authorities that two of his former associates had admitted guilt of related crimes. Former Alameda Research CEO Caroline Ellison and co-founder of FTX Gary Wang are now working with the government. Jerome Bankman-Fried, a co-founder of FTX, will probably go before a federal court on Thursday.
According to an affidavit read out in court on Wednesday, he consented to extradition in part out of a “desire to make the relevant consumers whole.” On November 11th, the $32 billion exchange filed for bankruptcy, and he resigned as CEO the same day.
Additionally, Gary Ellison and Wang have been charged with fraud for their participation in a multi-year plan to mislead FTX stock investors. On Wednesday night, Ellison and Wang were also hit with fraud accusations by the SEC and Commodity Futures Trading Commission.
It was reported after that Ellison would give up his right to challenge extradition, Wang and Ellison agreed to plea agreements on Monday. Each party is required to deposit a $250,000 release bond as part of the agreements, and prosecutors have the right to ask the judge to consider their cooperation when determining their sentences if they “offered substantial assistance in an investigation or prosecution.”
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