BREAKING: Former Top FTX Executives Plead Guilty To Federal Charges In Fraud Case.
“I’m announcing that the Southern District of New York has filed charges against Caroline Ellison, the former CEO of Alameda Research, and Gary Wong, a co-founder of FTX, in connection with their roles in the frauds that contributed to FTX’s collapse,” the U.S. attorney for the Southern District of New York said on Wednesday night. “Both Miss Ellison and Mr. Wong have pled guilty to those charges, and they are both cooperating with the Southern District of New York.”
Related: FTX Paid for Blockfolio Deal Mostly in FTT Token It Invented. “FTX paid roughly $84 million in 2020 to take a majority stake in Blockfolio, in what was then among the largest crypto acquisitions. About 94% was paid in FTT tokens, a cryptocurrency that FTX created, according to documents reviewed by Bloomberg. Details of the Blockfolio acquisition, which haven’t been previously reported, offer a glimpse of former FTX CEO Sam Bankman-Fried’s appetite for whimsical financial engineering, and an early hunger to amass customers through large-scale deals. Bankman-Fried doubled down on that ethos this year, going on a buyout binge for firms including Voyager and BlockFi, although those deals were thwarted when FTX imploded in November.”