Bloomberg: Nishad Singh, Brett Harrison, Key to Running Sam Bankman-Fried’s FTX

January 18, 2023

Control over the more than 130 entities under the FTX Group was in the hands of just a few executives at the company. Since the crypto exchange’s collapse, prosecutors have focused on those involved with Alameda Research, the hedge fund responsible for the billions in losses that forced FTX into bankruptcy. Former FTX CEO Sam Bankman-Fried pleaded not guilty to fraud charges, claiming that he was not aware of the affairs at Alameda. However, Alameda chief executive Caroline Ellison and FTX co-founder Gary Wang have both pleaded guilty to fraud charges. Former federal prosecutor Rebecca Mermelstein said the government usually prefers multiple cooperators to cover up “warts” in some witnesses’ credibility, but they do not need a bunch. “Three cooperators is already quite a lot,” Mermelstein said. “Someone who wants to cooperate here needs to ask themselves what they have that Ellison and Wang can’t give to the government.”

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