Two executives of Sam Bankman-Frieds Crypto Empire plead guilty to fraud

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Two former top executives of crypto trading empire Sam Bankman-Frieds have pleaded guilty to federal charges and are cooperating in the criminal case against the disgraced crypto entrepreneur, the US Attorney for the Southern District of New York.

The two are Caroline Ellison, who was the managing director of Mr. Bankman-Frieds’ crypto trading firm, Alameda Research, and Gary Wang, founder of crypto exchange FTX.

The guilty pleas and cooperation agreements are a major step forward in the fraud case against Mr Bankman-Fried, who is being held in the United States after agreeing to be extradited from the Bahamas earlier on Wednesday.

Mr. Bankman-Fried was accused of orchestrating a multi-year fraud that diverted billions of customer money for other purposes, including buying real estate in the Bahamas, trading crypto in Alameda, donations campaigning and investing in other crypto companies. Prosecutors say he defrauded customers, investors and lenders of his crypto trading company, which was once one of the biggest in the world before going bankrupt last month.

US attorney Damian Williams also said Mr Bankman-Fried is now in the FBI’s custody and will be returned to the US on Wednesday evening, and will be brought before a judge as soon as possible. He is expected to be brought to justice on Thursday.

Lawyers for Ms Ellison were not immediately available for comment. Ilan Graff, Mr. Wang’s attorney, said: Gary has accepted responsibility for his actions and takes his obligations as a cooperating witness seriously.

A spokesperson for Mr. Bankman-Fried declined to comment.

This is a developing story. Check back for updates.

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