Former Alameda CEO Reveals Forged Balance Sheets and Bribery in Sam Bankman-Fried’s Trial
Caroline Ellison, the former CEO of Alameda Research, testified on day 6 of Sam Bankman-Fried’s trial, shedding light on the defendant’s fraudulent activities. Ellison revealed that Bankman-Fried instructed her to forge multiple balance sheets to deceive lenders like Genesis. Additionally, it was disclosed that Bankman-Fried bribed Chinese officials and attempted to initiate a regulatory crackdown on FTX’s major competitor, Binance.
Testimony Highlights from Caroline Ellison
The Assistant US Attorney conducted a direct examination of Caroline Ellison during today’s session. Here are the key points from her testimony:
- Alameda faced loan recalls when the market declined in 2022.
- Genesis demanded $400 million from their open-term loan, leading Ellison to source funds from FTX customer funds.
- Bankman-Fried instructed Ellison to repay Alameda’s loans using FTX’s line of credit.
- $13 billion worth of Customer Deposits were held on FTX, with only $3 billion available for withdrawals as the rest was loaned out to Alameda.
- Alameda repaid $5 billion and withdrew all BRZ stablecoins.
- Bankman-Fried had control over decision-making and directed the repayment of loans and withdrawals from FTX balances.
- Alameda forged seven different balance sheets, disclosing only selected ones to lenders.
- Bribes totaling $100 million in crypto were paid to Chinese officials by FTX/Alameda.
- Bankman-Fried aimed to secure Saudi investors and initiate a regulatory crackdown on Binance.
Hot Take: Bankman-Fried’s Trial Unveils Deception and Bribery
The ongoing trial of Sam Bankman-Fried has taken a significant turn with Caroline Ellison’s testimony. The revelations of forged balance sheets and bribery add to the mounting evidence against the FTX founder. Bankman-Fried’s alleged actions not only defrauded lenders but also involved illicit activities such as bribing Chinese officials. As the trial progresses, the crypto community awaits further developments and potential consequences for Bankman-Fried.
By
By
By
