Breaking: Caroline Ellison and Gary Wang plead guilty to fraud charges

Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to federal fraud charges and are cooperating with prosecutors as part of the criminal case against the former CEO of FTX, Sam Bankman-Fried.

United States Attorney for the Southern District of New York (SDNY), Damian Williams made the announcement on Dec. 22, emphasizing that the latest major development is unlikely to be the last.

"As I said last week, this investigation is ongoing and moving very quickly. I also said last week's announcement would not be our last and let me be clear once again, neither is today's," he said, adding that:

I'm announcing that SDNY has filed charges against Caroline Ellison [...] and Gary Wang [...] in connection with their roles in the frauds that contributed to FTX's collapse. Both Ms. Ellison and Mr. Wang have plead guilty to those charges and both are cooperating with the SDNY. 

Williams also confirmed that SBF is now in the custody of the Federal Bureau of Investigation (FBI) and is "on his way back to the United States" where he will be transported directly to the Southern District of New York to appear before a judge "as soon as possible."

Statement of U.S. Attorney Damian Williams on U.S. v. Samuel Bankman-Fried, Caroline Ellison, and Gary Wang pic.twitter.com/u1y4cs3Koz

— US Attorney SDNY (@SDNYnews) December 22, 2022

Williams also used the statement to send a stark warning to anyone that may have 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."

This is a developing story and more information will be added as it becomes available.