Former Alameda Research CEO Admits to Providing Fudged Numbers
Testifying in Sam “SBF” Bankman-Fried’s criminal trial, former Alameda Research CEO Caroline Ellison confessed to manipulating numbers for review by Genesis. According to reports, Ellison claimed that Bankman-Fried instructed her to create “alternative” balance sheets regarding Alameda’s use of FTX’s funds. She admitted to providing seven spreadsheets, one of which was presented to Genesis but did not disclose that Alameda had borrowed $10 billion from FTX.
Concerns and Deception
Ellison expressed her worries about customer withdrawals from FTX and the potential harm if the truth came out. She admitted feeling guilty and acknowledged that her actions were dishonest and wrong. Throughout the trial, Ellison has placed blame on SBF for the collapse of FTX, while defense lawyers argue she was the instigator.
Witness for the Prosecution
Ellison is expected to be a key witness for the prosecution, following testimonies from FTX co-founder Gary Wang and former chief technology officer. Nishad Singh, a former FTX engineering director, is also listed as a potential witness as part of an agreement with the United States Justice Department.
Timeline and Charges
The prosecution plans to conclude their case by late October, after which the defense will call their witnesses. SBF has pleaded not guilty to fraud charges related to FTX and will face additional charges in a separate trial in March 2024.
Hot Take: Testimony Reveals Alleged Deception in Financial Reporting
In Sam Bankman-Fried’s ongoing criminal trial, former Alameda Research CEO Caroline Ellison testified about providing manipulated financial data. Her admission raises questions about the integrity of Alameda’s reporting and the potential impact on FTX customers. The trial continues to shed light on the inner workings of the cryptocurrency industry, emphasizing the importance of transparency and accountability. As the prosecution builds its case, it remains to be seen how this testimony will affect the outcome of the trial and whether it will lead to further investigations into Alameda Research and FTX.
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