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

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.