Alameda Research Employees Gather to Hear CEO Caroline Ellison’s Testimony
In a late-night all-hands meeting, Alameda Research employees gathered to listen to CEO Caroline Ellison’s testimony. The meeting took place in Hong Kong, with some employees present in person and others joining via video from the Bahamas. The meeting occurred as part of the criminal trial against Sam Bankman-Fried, the founder of Alameda and FTX.
Christian Drappi’s Testimony Reveals Concerns About Alameda’s Financial Situation
Christian Drappi, a former software engineer at Alameda, testified as a government witness during the trial. He described Ellison’s demeanor during the meeting as “sunken” and expressed concerns about the company’s financial situation.
Recording of the Meeting Played in Court
A recording of the meeting was played in court, featuring discussions about Alameda’s borrowed money, FTX’s shortfall of user funds, and plans to raise money to fill the hole. Drappi questioned Ellison about these decisions and expressed his concerns.
Drappi’s Relationship with Bankman-Fried
Drappi had worked closely with Bankman-Fried during his time at Alameda. They had direct communication through Signal and Bankman-Fried had access to Alameda’s internal interface and back-end data.
Binance Deal Falls Through, FTX Declares Bankruptcy
The night before the all-hands meeting, Bankman-Fried announced a non-binding agreement for Binance to acquire FTX. However, Binance later backed out of the deal, leading to FTX declaring bankruptcy two days later.
Hot Take: Alameda Research Faces Challenges Amidst Criminal Trial
The criminal trial against Sam Bankman-Fried and the testimonies of Alameda Research employees reveal the challenges faced by the company. The recording played in court highlights concerns about financial decisions and the impact on FTX’s user funds. The trial sheds light on the internal workings of Alameda and raises questions about corporate governance and risk management in the crypto industry.
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