FTX co-founder and Almeda’s ex-CEO both pleaded guilty to reduce the sentence
Top managers are under legal procedures in the aftermath of the FTX case
Gary Wang, the co-founder of FTX cryptocurrency exchange, and Caroline Ellison, the CEO of a cryptocurrency trading company Almeda Research (FTX’s subsidiary), both pleaded guilty to a row of criminal charges.
The pair came to spotlight last year, as a selloff in FTX’s native token FTT caused a bank run and FTX was unable to meet the customer’s demand for hard currency, leading it to file for bankruptcy in November 2022.
Both CEOs pleaded guilty in hope of a reduced jail time. They also agreed to provide assistance in ongoing investigations into wrongdoing at FTX/Alameda that would allow them to apply for reduced sentences.
Rumours are that the pair may come in handy in sentencing Sam Bankman-Fried (SBF), the co-founder of FTX, and revealing company sensitive information about the scope of unlawful behaviour. SBF has been extradited to the US from the Bahamas and is currently facing SEC and CFTC suits over fraud.
Wang and Ellison are the best leads in charging SBF as they were his closest allies and thus have most information about the extent to which SBF was aware of indulging in unlawful behaviour. Subsequently, the prosecutors have announced that if anyone from the two companies decided to step forward with additional information, they will be offered a potential reduction in penalty.
