Two associates of Bankman-Fried have pleaded guilty to fraud, and the founder of FTX is going to the U.S.

Sam Bankman-Fried, the founder of FTX, left the Bahamas on a flight to the United States on Wednesday to face fraud charges. At the same time, federal prosecutors announced that two of his former business partners had pleaded guilty to similar charges and were now helping the government.

In a video posted on Twitter late Wednesday night, Manhattan U.S. Attorney Damian Williams said that Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, the co-founder of FTX, had admitted to scamming investors in the crypto trading platform.


When it came out that two of Bankster Fried’s former friends had decided to help the government, the pressure on the former billionaire grew significantly.

Related: After hearing from a source, FTX’s Bankman-Fried has changed his mind and will agree to be sent to the U.S.

Williams said that Bankman-Fried is now in the custody of the FBI and on his way to the U.S. He also asked anyone else involved in the alleged fraud to come forward.

Williams said, “If you did something wrong at FTX or Alameda, now is the time to fix it.” “We’re moving quickly, and we won’t be able to wait forever.”

“I also said that last week’s announcement wouldn’t be our last, and I’ll say it again: today’s isn’t either,” he said.

In a separate statement on Wednesday evening, the U.S. Securities and Exchange Commission (SEC) said that Ellison and Wang had also been charged for their roles in a multiyear scheme to scam FTX investors.


The U.S. Commodity Futures Trading Commission also said that Ellison and Wang had been charged with fraud.

Ellison’s lawyer did not answer our request for comment right away.

A lawyer for Wang, Ilan Graff, said in a statement, “Gary has taken responsibility for what he did and takes his duties as a cooperating witness very seriously.”

Last week, federal prosecutors in Manhattan charged Bankman-Fried with stealing billions of dollars in customer assets from FTX to cover losses at his hedge fund, Alameda Research. Williams called this “one of the biggest financial frauds in American history.”

The 30-year-old cryptocurrency mogul has admitted that FTX had problems with risk management, but he has said that he does not think he is guilty of a crime.


A member of Bankman-Legal Fried’s team said that they would not say anything.

“Make the customers who matter whole.”

Bankman-Fried rode a crypto boom to become a multi-billionaire and a powerful political donor in the U.S., but FTX’s crash wiped out his wealth and ruined his reputation, and he is no longer a billionaire. The collapse was caused by a rush of customers pulling out their money because they were worried about their money being mixed with Alameda’s.

Williams and the regulators made the announcements just hours after Bankman-Fried left the Bahamas, where he agreed in court to be sent to the US.

Court records show that Ellison and Wang signed the plea deals on Monday, after Reuters and other news outlets said over the weekend that Bankman-Fried would give up his right to fight extradition.

The agreements say that Ellison and Wang must each put up a $250,000 bond to get out of jail. They also say that prosecutors can ask a judge to take their cooperation into account when deciding their sentences if they “substantially helped in an investigation or prosecution.”

Bankman-Fried will probably go to a federal court in Manhattan, New York, on Thursday. At his court date, which is called an arraignment, he is likely to be asked to say how he will plead. The U.S. judge would decide if he could get out of jail on bail and, if so, on what terms.

Last week, Bankman-Fried was arrested in the Bahamas, where he lives and where FTX is based, because the U.S. asked them to do so. In the end, he agreed to be extradited in part because he “wanted to make the relevant customers whole,” according to an affidavit from December 20 that was read in court on Wednesday.

Bankman-Fried went to court in a suit and stood in the witness box. As he was sworn in, he spoke slowly and clearly.

Related: Exclusive: Sam Bankman-Fried is going to change his mind about fighting extradition.

He told Judge Shaka Serville on Wednesday, “Yes, I do want to give up my right to formal extradition proceedings.”

The defence lawyer for Bankman-Fried, Jerone Roberts, said that his client was “eager to leave.”

The judge said he was sure that Bankman-Fried had not been “forced, coerced, or threatened” into agreeing to the extradition.

The $32 billion exchange went bankrupt on November 11, and Bankman-Fried quit as CEO the same day.


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