Former FTX official and Alameda Research CEO plead guilty to federal charges

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Former FTX official and Alameda Research CEO plead guilty to federal charges

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Two prominent executives embroiled in the FTX scandal plead guilty to federal charges, prosecutors for the Southern District of New York announced Wednesday.

Caroline Ellison, former CEO of Alameda Research, and Zixiao “Gary” Wang, the former chief technology officer of FTX, are said to be cooperating with prosecutors and were also hit with a civil complaint from the Securities and Exchange Commission for alleged fraud.

“Ms. Ellison, and Mr. Wang were active participants in a scheme to conceal material information from FTX investors, including through the efforts of Mr. Bankman-Fried and Ms. Ellison to artificially prop up the value of FTT, which served as collateral for undisclosed loans that Alameda took out from FTX pursuant to its undisclosed, and virtually unlimited, line of credit,” Sanjay Wadhwa, deputy director of the SEC’s Division of Enforcement, said.

https://twitter.com/SDNYnews/status/1605745361842327552

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