FTX case: Caroline Ellison and Gary Wang plead guilty

Cooperate – Sam Bankman-Fried will soon appear in court in the United States. The first hearing could provide more insight into the FTX founder’s line of defense. Unless he decides to follow in the footsteps of his two friends, Caroline Ellison and Gary Wang.

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Caroline Ellison and Gary Wang cooperate with investigators in the FTX case

On December 21, US Attorney Damian Williams announcement that former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang both pleaded guilty to FTX bankruptcy charges.

However, unlike the Sam Bankman-Fried case, the prosecutor did not not specified the charges which weigh against the duo. Caroline Ellison and Gary Wang would assist investigators in the FTX case, according to Damian Williams.

Two people from Sam Bankman-Fried’s close guard have therefore decided to assume their responsibilities in the crash of FTX and its affiliated entities. WilmerHale Law Firm represents Caroline Ellison.

Among their lawyers is Stephanie Avakian, who is former director of the enforcement division of the SEC. This clarification is important because the agency and the CFTC also made charges against Caroline Ellison and Gary Wang.

SEC and CFTC against FTX executives: Alameda credits in the sights

The deputy director of theenforcement of the SEC, Sanjay Wadhwa, indicated that Sam Bankman-Fried and his two colleagues “ have actively participated in a plan ” to hide important information to FTX investors.

Sam Bankman-Fried and Caroline Ellison are believed to be the main culprits in particular. They would have supported artificially the value of FTT “, which nevertheless served ” of collateral for undisclosed loans from Alameda to FTX. The defendants thus concealed the ” very real risks to which investors and clients of FTX exposed themselves.

Sam Bankman-Fried: what defense strategy against American justice?
How will Sam Bankman-Fried’s lawyers handle Caroline Ellison and Gary Wang’s decision to plead guilty?

As for the CFTC, the regulator issued charges almost similar to those of the SEC against Caroline Ellison and Gary Wang, who allegedly committed fraud and “ makes material misrepresentations relating to FTX Token sales. Alameda would have managed to ” maintain an unlimited line of credit mainly on FTX thanks to Gary Wang.

Will prosecutors and regulators announce indictments against other executives of FTX and its affiliates in the coming weeks? Sam Bankman-Fried has always dismissed allegations of fraud in his interviews. Will he now try to negotiate (bargain) his sentence by pleading guilty, knowing that two of his lieutenants have let him go?

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