Two executives of Sam Bankman-Fried’s Crypto Empire plead guilty to fraud

Two former top executives of Sam Bankman-Fried’s crypto-trading empire have pleaded guilty to federal charges and are cooperating in the criminal case against the disgraced crypto entrepreneur, the North’s attorney said late Wednesday -American from the Southern District of New York.

The two are Caroline Ellison, who was the executive director of Mr. Bankman-Fried’s crypto trading firm, Alameda Research, and Gary Wang, founder of crypto exchange FTX.

The guilty pleas and cooperation agreements are a major breakthrough in the fraud case against Mr. Bankman-Fried, who is in US custody after agreeing to be extradited from the Bahamas earlier Wednesday.

Mr. Bankman-Fried has been accused of orchestrating a multi-year fraud that diverted billions of clients’ money to other uses, including buying real estate in the Bahamas, trading cryptocurrency in Alameda, making campaign donations and investing in other crypto companies Prosecutors say he defrauded customers, investors and lenders of his crypto-trading firm, which was one of the largest in the world before it collapsed into bankruptcy last month.

U.S. Attorney Damian Williams also said that Mr. Bankman-Fried was now in FBI custody and was being flown back to the United States Wednesday night, and would be brought before a judge as soon as possible. He is scheduled to appear in court on Thursday.

Lawyers of Ms. Ellison was not immediately available for comment. Ilan Graff, the lawyer of Mr. Wang, Gary said, has accepted responsibility for his actions and takes his obligations as a cooperating witness seriously.

A spokesman for Mr. Bankman-Fried declined to comment.

This is a developing story. Check back for updates.

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