2 top Sam Bankman-Fried associates plead guilty in FTX scheme, will cooperate with prosecutors

Sam Bankman-Fried, the disgraced founder of cryptocurrency exchange FTX, is in FBI custody and en route from the Bahamas to New York City to face federal fraud charges tied to FTX's collapse, Manhattan U.S. Attorney Damian Williams said Wednesday night.
Bankman-Fried has indicated he will plead not guilty to the eight criminal charges filed against him. But Williams also announced in his video message that two of Bankman-Fried's top associates, Caroline Ellison and Gary Wang, secretly pleaded guilty to similar charges and "are both cooperating with the Southern District of New York."
Ellison, the former CEO of trading firm Alameda Research, pleaded guilty on Dec. 19 to seven counts including wire fraud and conspiracy to commit securities fraud. Bankman-Fried founded and owns most of Alameda, and he and Ellison were romantically involved at times, The Wall Street Journal reports. Wang, a software engineer who cofounded FTX and Alameda with Bankman-Fried, pleaded guilty to wire fraud and three other counts.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Without a plea deal, Ellison, 28, faced up to 110 years in prison, while Wang, 29, could get up to 50 years. In exchange for their cooperation, the Justice Department agreed to recommend a reduction in their sentences. "Gary has accepted responsibility for his actions and takes seriously his obligations as a cooperating witness," Wang's lawyer Ilan Graff said in a statement. Williams encouraged anyone else who participated in Bankman-Fried's alleged fraud to come forward. "We are moving quickly and our patience is not eternal," he said.
It isn't clear if Bankman-Fried, 30 and facing the possibility of life behind bars, knew about the plea deals of his top associates before he agreed to be extradited to the U.S.
Ellison and Wang also agreed to settle a parallel civil security and commodities fraud lawsuit filed by the Securities and Exchange Commission and Commodity Futures Trading Commission.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
5 low ratings cartoons about the Late Show cancellation
Cartoons Artists take on early warning signs, the Gen Z stare, and more
-
Connie Francis: Superstar of the early 1960s pop scene
In the Spotlight The 'Pretty Little Baby' and 'Stupid Cupid' singer has died aged 87
-
Crossword: July 26, 2025
The Week's daily crossword puzzle
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
'Wrench attacks' are targeting wealthy crypto moguls
The Explainer The attacks are named for physical coercion that can be used to gain crypto passwords
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement