FTX founder and former crypto king was transferred from Bahamian to FBI custody on Wednesday evening
Ellison pleaded guilty to seven charges of defrauding customers and investors of both FTX and Alameda, according to the agreement. The charges against her carry a maximum penalty of up to 110 years. As part of the plea deal, she was released on a $250,000 bond.
Williams said prosecutors planned to bring Bankman-Fried in front of a federal judge “as soon as possible”. If he is not granted bail in New York, he is likely to be locked up in Brooklyn’s Metropolitan detention center where he will awaits trial. The criminal charges were paired with civil charges from the US Securities and Exchange Commission , accusing Ellison and Wang, as well as Bankman-Fried, of securities violations related to the group’s in-house “FTT” cryptocurrency., between 2019 and 2022, Ellison, “at Bankman-Fried’s direction”, furthered the scheme by manipulating the price of FTT, an FTX-issued exchange crypto-security token, by purchasing large quantities on the open market to prop up its price.
FTX secretly advanced Alameda “a virtually unlimited ‘line of credit’ funded by the platform’s customers”, the SEC says, despite reassuring investors and depositors that it had “sophisticated automated risk measures” that would prevent any individual trade from losing customer funds. The unlimited line of credit ensured that when Alameda bets paid off, it profited, but when they failed, it was FTX customers who ultimately lost out.
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