Freedom Works economist Stephen Moore discusses what will happen to the donations former FTX CEO Sam Bankman-Fried made to politicians at “Varney & Co.”
Two former associates of FTX founder Sam Bankman-Fried pleaded guilty to charges of Securities and Exchange Commission (SEC) filed against them on Wednesday as part of a multiyear scheme to defraud investors.
Former CEO of Alameda Research Caroline Ellison, 28, and former CTO of FTX Trading LTD. Wire fraud and securities fraud commodity fraud.
Wang also co-founded FTX along with Bankman-Fried.
“They are cooperating with the Southern District of New York,” US Attorney General Damian Williams said Wednesday night, referring to Ellison and Wang.
FTX FOUNDER SAM BANKMAN-FRIED LANDS in New York after delivery from the Bahamas
A split image of Sam Bankman Fried, FTX logo, and former Alameda research executive Caroline Ellison, both facing charges amid FTX’s collapse. (Getty Images/Getty Images)
Damien said more criminal charges could be brought against others.
The sudden guilty pleas came just hours after the charges were initially announced and around the same time that Bankman-Fried reached the New York Having been delivered from the Bahamas.
His extradition comes amid criminal charges brought against him by US law enforcement related to his role in the FTX fiasco. He is expected to appear in federal court in New York City on Thursday.
Sam Bankman Fried, founder of FTX, center, is escorted by a Department of Corrections vehicle as he arrives at the Magistrates Court building for a hearing, in Nassau, Bahamas, Wednesday, Dec. 21, 2022. (AP Photo/Rebecca Blackwell/AP Newsroom)
FTX founder SAM BANKMAN-FRIED agrees to be extradited to us, as he faces criminal charges
Bankman-Fried faces multiple criminal charges from the Southern District of New York and the Securities and Exchange Commission, including conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodity fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, conspiracy to defraud the Federal Election Commission, and campaign finance violations electoral.
Reuters reported that his extradition to the United States was ordered by a Bahamian judge and approved by the 30-year-old suspect as part of his “desire to make the clients involved complete”. He is expected to appear in federal court in New York City Thursday.
The charges against Ellison and Wang were not made public until after Bankman Fried left Bahamas.
What are the lawyers for the fried bank likely to argue in its defense?
The FTX logo is arranged on a computer screen in Barcelona, Spain, on Tuesday, November 15, 2022. (Angel Garcia/Bloomberg via Getty Images/Getty Images)
On December 19, Ellison and Wang signed plea agreements in return for a promise of a reduced sentence, if they cooperate fully in the investigation.
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Without such a deal, Ellison could face up to 110 years in prison. Wang can have up to 50 years.
U.S. Attorney Damian Williams speaks during a news conference about the criminal charges against FTX founder Sam Bankman-Fried, Tuesday, December 13, 2022, in New York. (AP Photo/Julia Nikhinson/AP Newsroom)
FTX, once a leading cryptocurrency exchange, filed for Chapter 11 bankruptcy in November along with Alameda Research, West Real Series and 130 subsidiaries after FTX’s public collapse.
Prosecutors argue that Bankman-Fried illegally siphoned customer deposits from the FTX platform to bolster his personal wealth and enable Alameda’s trading, real estate purchases and massive campaign donations to US politicians.
The Associated Press contributed to this report.
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