https://www.theguardian.com/business/2022/dec/23/chief-executive-of-ftx-sister-company-pleads-guilty-to-seven-offences [p] Skip to main contentSkip to navigation Print subscriptions Sign in Search jobs Search US edition[ ] * US edition * UK edition * Australia edition * International edition The Guardian - Back to homeThe Guardian [ ] * News * Opinion * Sport * Culture * Lifestyle ShowMoreShow More * [ ]News + View all News + US news + World news + Environment + Soccer + US politics + Business + Tech + Science + Newsletters + Fight to vote * [ ]Opinion + View all Opinion + The Guardian view + Columnists + Letters + Opinion videos + Cartoons * [ ]Sport + View all Sport + Soccer + NFL + Tennis + MLB + MLS + NBA + NHL + F1 * [ ]Culture + View all Culture + Film + Books + Music + Art & design + TV & radio + Stage + Classical + Games * [ ]Lifestyle + View all Lifestyle + Fashion + Food + Recipes + Love & sex + Home & garden + Health & fitness + Family + Travel + Money * Search input [ ] google-search Search + Support us + Print subscriptions * [ ]US edition + UK edition + Australia edition + International edition + Europe edition * + Search jobs + Digital Archive + Guardian Puzzles app + Guardian content licensing site + The Guardian app + Video + Podcasts + Pictures + Inside the Guardian + Guardian Weekly + Crosswords + Corrections * + Facebook + Twitter * + Search jobs + Digital Archive + Guardian Puzzles app + Guardian content licensing site * Business * Economics * Sustainable business * Diversity & equality in business * Small business * Retail FTX Chief executive of FTX sister company pleads guilty to seven offences Plea deal with former Alameda CEO Caroline Ellison lists charges of wire fraud, securities fraud and money laundering FTX logo [ ] The Commodity Futures Trading Commission also filed an amended complaint detailing the case against Ellison and Alameda/FTX co-founder Gary Wang. Photograph: Stefani Reynolds/AFP/Getty The Commodity Futures Trading Commission also filed an amended complaint detailing the case against Ellison and Alameda/FTX co-founder Gary Wang. Photograph: Stefani Reynolds/AFP/Getty Alex Hern @alexhern Fri 23 Dec 2022 12.11 ESTLast modified on Fri 23 Dec 2022 16.52 EST * * * Caroline Ellison, the former chief executive of the FTX sister company Alameda Research, has agreed to plead guilty to seven offences including wire fraud, securities fraud and money laundering, according to a newly unsealed agreement with prosecutors. The combined maximum sentence for the offences is 110 years, but Ellison's cooperation with the investigation means she is likely to receive a substantially reduced punishment. Alongside the newly unsealed plea deal, the Commodity Futures Trading Commission filed an amended complaint detailing the case against Ellison and the Alameda/FTX co-founder Gary Wang, incorporating their conduct alongside the previously filed charges against Sam Bankman-Fried, the founder of the FTX group. The CFTC's amended complaint charges Ellison with fraud and material misrepresentations in connection with the sale of digital asset commodities in interstate commerce, and charges Wang with fraud in connection with the sale of digital asset commodities in interstate commerce. The commission claims that Wang specifically wrote features in the code underlying FTX, a cryptocurrency exchange, to allow Alameda to maintain an "essentially unlimited line of credit" on the platform. It also alleges that Ellison directed Alameda to use "billions of dollars of FTX funds, including FTX customer funds, to trade on other digital asset exchanges and to fund a variety of high-risk digital asset industry investments". Even as she gambled Alameda customer money - received through the unlimited line of credit and other loans between FTX and Alameda - she insisted in public that the two companies were separate, the complaint charges. The CFTC's chairman, Rostin Behnam, said: "With today's charges we continue to move aggressively to hold all individuals who commit fraud accountable and protect customers from additional harm and losses. In the absence of a comprehensive regulatory framework over digital assets, the CFTC will use all of its existing power and authority to protect all market participants, while ensuring the integrity of commodity markets." In contrast to Bankman-Fried, who was released on a $250m bail and ordered to be confined to his parents' Palo Alto house, Ellison's bail was set at $250,000. She will not be allowed to leave the continental United States. The plea deal protects her from further criminal charges, with the exception of potential tax violations, but doesn't cover other potential civil prosecution from other agencies. Sign up to Business Today Free daily newsletter Get set for the working day - we'll point you to the all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. The CFTC's complaint describes the situation at Alameda after FTX announced plans to sell itself to its competitor Binance, a sale that fell through and forced the exchange into bankruptcy. During an all-hands meeting, the commission alleges, "Ellison acknowledged that earlier that year, she, Bankman-Fried and other individuals had decided to use FTX customer assets to pay Alameda's debts, and that Wang and another FTX executive were aware of this ... She also explained that Alameda could access user assets without requiring FTX's approval as the 'structure' allowed Alameda to 'go negative in coins'." Topics * FTX * Sam Bankman-Fried * Cryptocurrencies * E-commerce * news * * * * * * Reuse this content More on this story More on this story * [2625] FTX seeks to claw back donations to politicians and charities 3d ago * [3500] Bitcoin has rallied. What are crypto's true believers still smoking? 14 Dec 2022 * [3500] Warren pushes bipartisan bill to regulate crypto firms after FTX collapse 14 Dec 2022 * [3500] Binance founder insists 'business as usual' after $1bn pulled out in a day 14 Dec 2022 * [4979] FTX founder Sam Bankman-Fried charged with defrauding investors 13 Dec 2022 * [3282] Bankman-Fried 'would give anything' to start new business to repay FTX users 10 Dec 2022 * [5502] FTX's Sam Bankman-Fried to testify before Congress next week 10 Dec 2022 * [3500] ECB says bitcoin is on 'road to irrelevance' amid crypto collapse 30 Nov 2022 * [4989] Crypto lender BlockFi files for bankruptcy after FTX collapse 28 Nov 2022 Most viewed Most viewed * Business * Economics * Sustainable business * Diversity & equality in business * Small business * Retail * News * Opinion * Sport * Culture * Lifestyle Original reporting and incisive analysis, direct from the Guardian every morning Sign up for our email * About us * Help * Complaints & corrections * SecureDrop * Work for us * Privacy policy * Cookie policy * Terms & conditions * Contact us * All topics * All writers * Digital newspaper archive * Facebook * YouTube * Instagram * LinkedIn * Twitter * Newsletters * Advertise with us * Guardian Labs * Search jobs Back to top (c) 2022 Guardian News & Media Limited or its affiliated companies. 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