Caroline Ellison, CEO of Alameda Research, a privately-controlled hedge fund owned by Sam Bankman-Fried, and Gary Wang, co-founder of FTX, both pleaded guilty to criminal charges, U.S. Attorney Damian Williams said Wednesday, according to ABC.
According to newly unsealed court documents, Ellison, who dated Bankman-Fried, pleaded guilty to conspiracy to commit wire fraud on customers of FTX, wire fraud on customers of FTX, conspiracy to commit wire fraud on lenders of Alameda Research and wire fraud on lenders of Alameda Research, conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.
If convicted of all seven counts, Ellison could face a maximum sentence of 110 years in prison.
Wang, who faces up to 50 years in prison, pleaded guilty to conspiracy to commit wire fraud on customers of FTX, wire fraud on customers of FTX, conspiracy to commit commodities fraud and conspiracy to commit securities fraud, according to the court documents.
Earlier this month, Bankman-Fried was arrested in the Bahamas on Dec. 12, the country’s attorney general announced in a statement. The following day, a grand jury indicted him on eight counts of wire fraud, securities fraud, money laundering and a campaign finance violation, according to federal prosecutors.
After being forced to step down as CEO, Bankman-Fried had continued to reside in the island nation, where FTX is headquartered. The company, which was once one of the world’s largest crypto platforms and valued at $32 billion, is now in bankruptcy proceedings.
The fallen crypto entrepreneur agreed to be extradited to the United States after his arrest in the Bahamas and is expected to be arraigned Thursday on the eight-count indictment.