Two of Sam Bankman-Fried’s top associates secretly pleaded guilty to criminal charges in the collapse of the cryptocurrency exchange FTX and are co-operating with investigators, a federal prosecutor announced Wednesday as the crypto entrepreneur was returned to the U.S. from the Bahamas.
Caroline Ellison, the 28-year-old former CEO of Alameda Research, a trading firm started by Bankman-Fried, and Gary Wang, the 29-year-old who co-founded FTX, pleaded guilty to charges including wire fraud, securities fraud and commodities fraud.
“They are both co-operating with the Southern District of New York,” U.S. Attorney Damian Williams said Wednesday night in a video statement released on social media.
He added that anyone else who participated in the fraud should reach out to his office because “our patience is not eternal” and further criminal charges against others were possible.
The surprise guilty pleas were announced as Bankman-Fried was extradited from the Bahamas by U.S. law enforcement to answer to charges tied to his role in FTX’s failure. Media outlets said Bankman-Fried’s flight landed in New York on Wednesday night. He was expected to appear in a federal court in New York City on Thursday.
Before Bankman-Fried was in the air, U.S. prosecutors hadn’t publicly revealed that Ellison and Wang were facing potential criminal charges or that they had pledged to work with investigators.
A plane taxis toward the runway in Nassau, Bahamas with FTX co-founder Sam Bankman-Fried on board as he was extradited to the United States. Bahamian authorities arrested Bankman-Fried last week at the request of the U.S. government. (Joe Raedle/Getty Images)
It was unclear whether Bankman-Fried, who has apologized for FTX’s collapse but denied defrauding anyone, was also in the dark.
Ellison and Wang signed plea agreements on Dec. 19, partially in exchange for a promise that prosecutors would recommend a reduction in their sentences if they co-operate fully in the investigation.
Without such a deal, Ellison, who also faces a money laundering conspiracy charge, could face up to 110 years in prison. Wang could get up to 50 years.
Released on bail
Both were released on $250,000 US bail after their secret court appearances with travel restricted to the continental United States.
“Gary has accepted responsibility for his actions and takes seriously his obligations as a co-operating witness,” said Wang’s lawyer, Ilan Graff.
A lawyer for Ellison did not immediately return messages seeking comment.
In a parallel civil complaint filed Wednesday, the Securities and Exchange Commission said Wang and Ellison were “active participants” in what it said was Bankman-Fried’s scheme to defraud FTX investors and swindle its customers.
U.S. Attorney announces guilty pleas related to crypto trading platform FTX
Manhattan U.S. Attorney Damian Williams says two former associates of FTX founder Sam Bankman-Fried have pleaded guilty to fraud charges and are cooperating with the government.
Wang created the software code that allowed Alameda to divert FTX customer funds. Ellison then used the misappropriated funds for Alameda’s trading activity, the SEC said.
Bahamian authorities arrested Bankman-Fried last week at the request of the U.S. government. U.S. prosecutors allege he played a central role in the rapid collapse of FTX and hid its problems from the public and investors.
The SEC and prosecutors said Bankman-Fried illegally siphoned off customer deposits on the FTX platform and used it to enable Alameda’s trading, buy real estate and make huge campaign donations to U.S. politicians.
Faces life sentence
The 30-year-old could potentially spend the rest of his life in jail.
Bankman-Fried was initially denied bail by a Bahamian judge. The founder and former CEO of FTX, once worth tens of billions of dollars on paper, was then held in the Bahamas’ Fox Hill prison, which has been cited by human rights activists as having poor sanitation and as being infested with rats and insects.
On Wednesday, Bahamian Attorney General Ryan Pinder said Bankman-Fried had agreed to be transferred to the U.S.
Reporters witnessed Bankman-Fried leaving a Magistrate Court in Nassau in a dark SUV earlier Wednesday after waiving his right to challenge the extradition.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
