Sam Bankman-Fried, the founder of FTX, has reportedly been taken into custody by the Federal Bureau of Investigation (FBI) and is currently on a flight bound for the United States to face fraud charges.
Two former associates of Bankman-Fried, Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, the co-founder of FTX, have pleaded guilty to defrauding investors in the cryptocurrency trading platform and are now cooperating with the government, Reuters reports.
Manhattan U.S. Attorney Damian Williams stated in a video posted on Twitter that Bankman-Fried is now in FBI custody and on his way to the U.S, and urged others involved in the alleged fraud to come forward.
Williams said, “If you 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.” Williams added, “I also said that last week’s announcement would not be our last, and let me be clear once again, neither is today’s.”
In addition to the criminal charges, the U.S. Securities and Exchange Commission (SEC) announced in a separate statement on Wednesday evening that it has also charged Ellison and Wang for their roles in a multiyear scheme to defraud equity investors of FTX. The U.S. Commodity Futures Trading Commission also announced that it has filed fraud charges against Ellison and Wang.
An attorney for Ellison did not immediately respond to a request for comment. However, Ilan Graff, a lawyer for Wang, stated in a statement, “Gary has accepted responsibility for his actions and takes seriously his obligations as a cooperating witness.”
