FTX Trading Arm Alameda Research Allegedly Paid Bribe to Unfreeze $1 Billion: Caroline Ellison
Caroline Ellison, a former CEO of Alameda Research and close associate of former FTX CEO Sam Bankman-Fried, has claimed that the exchange’s trading arm paid a bribe to the Chinese government to unfreeze $1 billion. In court transcripts reported by The Inner City Press, Ellison revealed details of her chats with Bankman-Fried on messaging app Signal.
According to Ellison, Bankman-Fried insisted that all Signal chats automatically delete after a certain time. She admitted that Alameda paid Chinese entities to unfreeze the funds following a money laundering investigation. FTX executives David Ma and Constance Wang were able to communicate with Chinese officials to resolve the issue, with Ma suggesting sending $100 million to specific crypto addresses.
Hot Take: Allegations of Bribery Shake FTX and Alameda Research
The allegations made by Caroline Ellison regarding a massive bribe paid by Alameda Research to Chinese officials have raised serious concerns about the ethics and integrity of FTX and its trading arm. If proven true, these allegations could have severe repercussions for both companies, including legal consequences and damage to their reputation.
While FTX has already faced charges for alleged bribery, Ellison’s testimony reveals new details about the extent of the corruption. The involvement of high-ranking executives in facilitating the bribe raises questions about the company’s internal controls and compliance practices.
The crypto community will be closely watching how these allegations unfold and whether there will be further investigations or actions taken against FTX and Alameda Research. This case serves as a reminder that transparency and ethical conduct are essential in the cryptocurrency industry to maintain trust and legitimacy.
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