FTX Associates Plead Guilty to Fraud

Facts

On Wednesday, Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, co-founder of crypto exchange FTX, pleaded guilty to several charges, including wire fraud, securities fraud, and commodities fraud.
Both Ellison — whose charges collectively carry a maximum prison sentence of 110 years — and Wang — facing up to 50 years — struck a plea deal with the US Dept. of Justice (DOJ) earlier this week.
As part of the plea deals, Ellison and Wang must fully cooperate with investigators, providing them with documents and records and testifying when asked. The government, in turn, will request the judge give them lesser sentences.
The surprise guilty pleas came as FTX co-founder and CEO Sam Bankman-Fried was extradited from the Bahamas by US law enforcement to answer charges tied to his role in the company’s collapse.
Last week, Bankman-Fried was arrested at his home in the Bahamas at the request of the US. He has been charged with defrauding customers and investors, money laundering, and making illegal political campaign contributions. Regulators are also investigating him for fraud.
Ellison and Wang aren't the first to flip on their former boss. Top FTX executive Ryan Salame reportedly told securities regulators in the Bahamas last month that FTX was transferring customers' assets to Alameda to cover the hedge fund's losses.

Pro-establishment narrative, as provided by New Yorker. According to the government's account, Bankman-Fried's corruption was baked into FTX's processes from the very start of its operation. Whether he was dishonest, deluded, or both, the US government is rightfully conducting the most thorough investigation and prosecution of this fraudulent crypto billionaire.
Establishment-critical narrative, as provided by New York Times. Both Bankman-Fried and Ryan Salame donated tens of millions to establishment Republican and Democratic politicians and campaign committees. There's a reason for the silence on this issue from both sides of the aisle in Washington; the collapse of FTX exposed the dirty US campaign finance underworld, and the hushed tone from the political elite tells it all.