Check out the Elections page on Straight Arrow News
Filed Under: Business

FTX’s Bankman-Fried released on $250M bail, coworkers plead guilty

By , ,

A judge ruled FTX founder Sam Bankman-Fried could be released on $250 million bail and put under house arrest at his parents’ California home while he awaits trial in New York City on eight federal criminal charges. As Bankman-Fried fights the charges against him, some of his coworkers have already pleaded guilty to fraud charges and are cooperating with authorities.

Alameda Research CEO Caroline Ellison, Bankman-Fried’s ex-girlfriend, along with FTX co-founder Gary Wang, pleaded guilty to charges brought by the Southern District of New York. The two are also cooperating with the Securities and Exchange Commission investigation, according to the agency, which has leveled two more fraud charges against Bankman-Fried’s former associates.

While Bankman-Fried has repeatedly stated in multiple media interviews that he was not aware of any improper use of customer funds between the FTX exchange and the group’s sister company, trading firm Alameda Research, the SEC complaint alleges the exact opposite.

According to the complaint against Ellison and Wang, both allegedly committed fraud at the direction of Bankman-Fried. Ellison is charged with, among other things, manipulating the price of FTT tokens at Bankman-Fried’s request to inflate Alameda’s collateral. The SEC also claims Bankman-Fried told Ellison to use software code Wang created to borrow “virtually limitless funds from FTX,” all hidden from customers and investors.

“I really deeply wish that I had taken a lot more responsibility for understanding what the details were of what was going on there,” Bankman-Fried said in a Good Morning America interview in early December.

Ellison and Wang aren’t the only FTX associates cooperating with authorities, either. FTX Digital Chair Ryan Salame alerted authorities to the fund-transferring scheme days before the company filed for bankruptcy. Salame’s whistleblowing helped lead to Bankman-Fried’s charges.

To date, Salame has not faced public charges. However, authorities do expect other FTX employees will.

“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it. We are moving quickly and our patience is not eternal,” U.S. Attorney Damian Williams said Wednesday night.

SIMONE DEL ROSARIO: THE LATEST CHARGES IN THE FTX FRAUD CASE ARE BLOWING A HOLE THROUGH FOUNDER SAM BANKMAN-FRIED’S DEFENSE.

AS AUTHORITIES EXTRADITED THE EMBATTLED FORMER CEO FROM THE BAHAMAS, WE LEARNED HIS COWORKERS ARE TURNING ON HIM.

ALAMEDA RESEARCH CEO CAROLINE ELLISON, HIS EX-GIRLFRIEND, ALONG WITH FTX CO-FOUNDER GARY WANG, ALREADY PLEADED GUILTY TO FRAUD CHARGES AND ARE COOPERATING WITH THE JUSTICE DEPARTMENT.

THEY’RE ALSO COOPERATING WITH THE SEC’S INVESTIGATION. THE AGENCY HAS LEVELED TWO MORE FRAUD CHARGES AGAINST THEM.

SAM BANKMAN-FRIED: I did not know that there was any improper use of customer funds.

SIMONE DEL ROSARIO: THE FEDERAL COMPLAINTS ALLEGE THE OPPOSITE OF WHAT SBF HAS CLAIMED IN MULTIPLE MEDIA INTERVIEWS BEFORE HIS ARREST.

SAM BANKMAN-FRIED: I really deeply wished that I had taken, like, a lot more responsibility for understanding what the details were of what was going on there.

SIMONE DEL ROSARIO: WHILE SBF CLAIMS IGNORANCE,

SAM BANKMAN-FRIED: I didn’t knowingly commit fraud I don’t think I committed fraud :04}

SIMONE DEL ROSARIO: THE SEC COMPLAINT AGAINST ELLISON AND WANG SAYS BOTH COMMITTED FRAUD AT THE DIRECTION OF BANKMAN-FRIED.

ELLISON’S CHARGED WITH, AMONG OTHER THINGS, MANIPULATING THE PRICE OF FTT TOKENS AT SBF’S REQUEST, TO INFLATE FTX’S SISTER COMPANY ALAMEDA’S COLLATERAL.

THE SEC ALSO CLAIMS SBF TOLD ELLISON TO USE SOFTWARE CODE WANG CREATED TO BORROW VIRTUALLY LIMITLESS FUNDS FROM FTX – ALL HIDDEN FROM CUSTOMERS AND INVESTORS.

ELLISON AND WANG AREN’T THE ONLY ONES COOPERATING. WE ALREADY KNOW FTX DIGITAL CHAIRMAN RYAN SALAME ALERTED AUTHORITIES TO THE SCHEME DAYS BEFORE THE COMPANY FILED FOR BANKRUPTCY.

SALAME’S WHISTLEBLOWING HELPED LEAD TO SBF’S CHARGES, WHILE HE HAS FACED NONE TO DATE.

BUT AUTHORITIES EXPECT OTHER FTX GROUP EMPLOYEES WILL.

U.S. ATTORNEY DAMIAN WILLIAMS: If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it. we are moving quickly and our patience is not eternal.

SIMONE DEL ROSARIO: SBF’S CASE WILL PLAY OUT HERE IN NEW YORK. I’M SIMONE DEL ROSARIO. IT’S JUST BUSINESS.

Media Landscape

more +

192 Other sources covering this story

Bias Distribution

L 29%
C 53%
R 18%

53% of the sources are Center

Powered by Ground News™


A judge ruled FTX founder Sam Bankman-Fried could be released on $250 million bail and put under house arrest at his parents’ California home while he awaits trial in New York City on eight federal criminal charges. As Bankman-Fried fights the charges against him, some of his coworkers have already pleaded guilty to fraud charges and are cooperating with authorities.

Alameda Research CEO Caroline Ellison, Bankman-Fried’s ex-girlfriend, along with FTX co-founder Gary Wang, pleaded guilty to charges brought by the Southern District of New York. The two are also cooperating with the Securities and Exchange Commission investigation, according to the agency, which has leveled two more fraud charges against Bankman-Fried’s former associates.

While Bankman-Fried has repeatedly stated in multiple media interviews that he was not aware of any improper use of customer funds between the FTX exchange and the group’s sister company, trading firm Alameda Research, the SEC complaint alleges the exact opposite.

According to the complaint against Ellison and Wang, both allegedly committed fraud at the direction of Bankman-Fried. Ellison is charged with, among other things, manipulating the price of FTT tokens at Bankman-Fried’s request to inflate Alameda’s collateral. The SEC also claims Bankman-Fried told Ellison to use software code Wang created to borrow “virtually limitless funds from FTX,” all hidden from customers and investors.

“I really deeply wish that I had taken a lot more responsibility for understanding what the details were of what was going on there,” Bankman-Fried said in a Good Morning America interview in early December.

Ellison and Wang aren’t the only FTX associates cooperating with authorities, either. FTX Digital Chair Ryan Salame alerted authorities to the fund-transferring scheme days before the company filed for bankruptcy. Salame’s whistleblowing helped lead to Bankman-Fried’s charges.

To date, Salame has not faced public charges. However, authorities do expect other FTX employees will.

“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it. We are moving quickly and our patience is not eternal,” U.S. Attorney Damian Williams said Wednesday night.

Related Reports


Get unbiased straight facts, context, and perspective!