Gary Wang, one of the top executives at the now-collapsed FTX, played an active role in a scheme to misuse FTX customer assets and increase the price of FTT tokens.
Zixiao « Gary » Wang and Caroline Ellison, the two executives in Sam Bankman-Fried’s now fallen crypto exchange FTX, have pleaded guilty to federal charges including wire fraud, securities fraud and commodities fraud in exchange for leniency.
The US Attorney Damian Williams, of the Southern District of New York, said Wang and Ellison were cooperating in the continuing investigation into FTX and SBF. The Securities and Exchange Commission (SEC) has also charged the two executives for their roles in a multiyear scheme to defraud equity investors in the crypto exchange.
Ellison is alleged to have helped manipulate the price of FTX-issued token FTT, which served as a collateral for undisclosed loans from FTX customers’ assets to Alameda, while Wang created software code to allow the sister firm to divert FTX customers’ funds that Ellison used for Alameda’s trading activity.
