Former Alameda Research CEO Admits to Providing Misleading Balance Sheets
Caroline Ellison, the former CEO of Alameda Research, a subsidiary of the defunct FTX exchange, has confessed to presenting seven different balance sheets. In her testimony during Sam Bankman-Fried’s trial, she revealed that Bankman-Fried instructed her to create “alternative” balance sheets to deceive Genesis lenders about Alameda’s use of funds from FTX Derivatives Exchange. One of the spreadsheets failed to disclose that Alameda had borrowed $10 billion from FTX. Ellison expressed discomfort and admitted that her actions were dishonest and wrong.
Ellison Blames Bankman-Fried for FTX Collapse
Throughout the trial, Ellison has primarily placed the blame on Sam Bankman-Fried for the collapse of FTX. She alleges that he directed the misuse of customer funds, while the defense portrays her as the instigator. Ellison is considered the key witness for the prosecution in Bankman-Fried’s trial. The trial is expected to rest its case soon, after which the defense will call witnesses. Bankman-Fried has pleaded not guilty to fraud charges related to FTX and faces additional charges in a separate trial in March 2024.
Hot Take: Caroline Ellison’s Testimony Sheds Light on Deception at Alameda Research
In her testimony during Sam Bankman-Fried’s trial, former Alameda Research CEO Caroline Ellison admitted to providing misleading balance sheets and concealing significant financial dealings from stakeholders. Her testimony exposed a web of deceit surrounding Alameda Research’s financials and implicated Bankman-Fried in directing these deceptive practices. This trial will determine where ultimate responsibility lies for the collapse of FTX. Ellison’s confession raises questions about the integrity of cryptocurrency exchanges and highlights the need for greater transparency and accountability in the industry.
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