Former Alameda Research CEO Reveals Financial Crimes at FTX
In court testimony, former CEO of Alameda Research, Caroline Ellison, provided more details about the financial crimes she committed at FTX alongside her ex-boyfriend, Sam Bankman-Fried.
FTX’s Bribery Scheme
When other methods to recover funds failed, Alameda resorted to bribery. Ellison revealed that FTX bribed the Chinese government with $100 million to unlock a larger pool of frozen assets. They conspired with two individuals in China who had connections to the government. Despite objections, Bankman-Fried insisted on using their method to unfreeze $1 billion in funds seized in a money laundering investigation.
Sam Bankman Fried’s Media Plans
Ellison also disclosed Bankman-Fried’s motivations and plans. He wanted to buy Snapchat and push regulators to crack down on Binance. He invested in media sites like Semafor and considered Vox and Forbes. He frequently met with author Michael Lewis to cultivate his image as an eccentric founder, which included his unkempt hair and choice of a Toyota Corolla.
Concealing Information from Creditors
Ellison revealed that Alameda made efforts to present a stable image to its trading desk’s creditors. When Genesis recalled a $400 million loan and requested an updated balance sheet, Bankman-Fried instructed Ellison to conceal information. She produced seven different versions of the balance sheet, hiding their $9.9 billion hole.
Hot Take: Former CEO Testifies about Financial Crimes at FTX
In court testimony, former Alameda Research CEO Caroline Ellison provided detailed insights into the financial crimes committed at FTX by herself and her ex-boyfriend Sam Bankman-Fried. The revelations include FTX’s bribery of the Chinese government with $100 million to unlock frozen assets and Bankman-Fried’s media plans and efforts to conceal information from creditors. These revelations shed light on the unethical practices within the cryptocurrency industry and raise questions about the integrity of FTX and its executives.
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