When FTX founder Sam Bankman-Fried was extradited from the Bahamas to the United States last week, two of his former business partners pleaded guilty to multiple fraud and collusion charges.
Ellison said in court, “I’m really sorry for what I did. I knew it was wrong.”
Another associate, former FTX Chief Technology Officer Gary Wang, pleaded guilty to four counts of similar charges.
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Both Ellison and Wang are cooperating with federal prosecutors, which could put them at a disadvantage as witnesses against Bankman-Fried, who has repeatedly denied that he willfully defrauded customers and investors.
$250 million is an outrageous sum, but Bankman-Fried won’t have to pay unless he violates the terms of his bail agreement or fails to appear in court. An atypical bail plan was agreed as part of his commitment to waive his extradition dispute.
Bankman-Fried’s legal team confirmed to CNN Business that he arrived in Palo Alto and is home with his parents. His attorney declined to comment on the guilty pleas by Ellison and Wang.
A federal judge said Thursday Bankman-Fried will be arraigned on eight crimes, including fraud and conspiracy, at an unspecified future date.
Prosecutors say Bankman-Fried orchestrated “one of the biggest financial scams in American history” and stole billions from FTX customers to cover losses at Alameda and enrich themselves. claim. If convicted, he could face life in prison.
— CNN’s Kara Scannell contributed to the report.
