U.S. Attorney Damian Williams announced Wednesday night that FTX co-founder and former CTO Gary Wang and former Alameda Research CEO Caroline Ellison both have pled guilty to charges related to fraud which occurred in the collapse of failed cryptocurrency exchange FTX.

Williams noted that both Wang and Ellison have turned and are aiding his office as cooperating witnesses.

Williams was not specific as to the charges levied against Wang and Ellison, nor was he specific as to what charges they pled guilty to.

The SEC announced that it has charged both Wang and Ellison in separate actions with defrauding FTX investors, however it noted both were cooperating with its investigation, and both had already entered into settlements with the Commission.

Gary Wang, 29, had known Bankman-Fried since they were roommates together at MIT, before going on to found FTX with him 2019.

Caroline Ellison, 28, worked with Bankman Fried at Jane Street Capital, before being chosen to run Bankman-Fried’s trading operation, Alameda Research, a subsidiary of FTX.

Bankman-Fried’s extradition was approved by a judge on Wednesday, following the Bahamas Minister of Foreign Affairs signing off on the order. Williams confirmed the extradition had taken place, and Bankman Fried was now in US custody.

Williams said, “Samuel Bankman-Fried is now in FBI custody and is on his way back to the United States. He will be transported directly to the Southern District of New York, and he will appear in court before a judge in this district as soon as possible.”

Bankman-Fried had been held in custody at the Fox Hill prison in New Providence, Bahamas up until his extradition Wednesday.

Williams went on to say, “As I said last week, this investigation is very much ongoing and is moving very quickly. I also said that last week’s announcement would not be our last. And let me be clear once again: Neither is today’s.”

According to the complaint from the SEC, between 2019 and 2022, Ellison, at Bankman-Fried’s behest, sought to manipulate the price of FTX’s token, FTT, “by purchasing large quantities on the open market to prop up its price.”

FTX would then use its held FTT tokens as collateral for loans the company would take out using its customer’s assets, to give to Alameda. This permitted Alameda to overstate its balance sheet’s value, which misled investors about Alameda’s exposure.

As this was going on, Bankman-Fried was representing FTX as a “safe crypto asset trading platform with sophisticated risk mitigation measures to protect customer assets.”

FTX’s new CEO, John J. Ray III, testified before the U.S. House Financial Services Committee on December 13 that he estimates FTX’s losses exceed $7 billion dollars.

The SEC complaint goes on the allege FTX customer funds were used to fund trading activities at Alameda, loans to FTX executives, as well as to fund private real estate purchases.

The complaint said, “Between March 2020 and September 2022, Bankman-Fried executed promissory notes for loans from Alameda totaling more than $1.338 billion, including two instances in which Bankman-Fried was both the borrower in his individual capacity and the lender in his capacity as CEO of Alameda. Ellison knew, or was reckless in not knowing, about these ‘loans.'”

The SEC further alleged that as CTO of FTX, Wang oversaw the development of the platform’s software, which allowed FTX customer funds to be directed into Alameda, where Ellison would then misappropriate those funds and use them for trading activity.

The complaint also alleges that even as it became clear FTX was collapsing, and customer funds were already lost, Bankman-Fried, “directed hundreds of millions of dollars more in FTX customer funds to Alameda” and that Ellison and Wang were aware of this.

The SEC’s stated in its complaint, “By surreptitiously siphoning FTX’s customer funds onto the books of Alameda, defendants hid the very real risks that FTX’s investors and customers faced.”

The SEC is seeking to bar Wang and Ellison from serving as corporate officers, as well as inflict monetary penalties. The Commission is also seeking an injunction barring the defendants from any involvement in issuing, purchasing, offering, or selling traditional and crypto securities.

The SEC said it has reached settlements with both, subject to the approval of the court.