Alameda's former CEO Ellison said she, Bankman-Fried misled FTX lenders - BNN Bloomberg

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Former Alameda Research CEO Caroline Ellison said she and FTX co-founder Sam Bankman-Fried knowingly misled lenders about how much the trading firm was borrowing from the cryptocurrency exchange.

Ellison gave her first public account of her actions in a Dec. 19 plea hearing in Manhattan federal court. “I knew that it was wrong,” she said, according to a transcript of the hearing. FTX co-founder Gary Wang also gave a statement that day.

Bankman-Fried, 30, is charged with orchestrating a years-long fraud in which he used billions of dollars of FTX customer funds for personal expenses and high-risk bets through Alameda. In interviews following FTX’s bankruptcy, Bankman-Fried repeatedly said he was unaware of what went on at Alameda, a defense undermined by the statements from Wang and Ellison.

According to Ellison, “if Alameda’s FTX accounts had significant negative balances in any particular currency, it meant that Alameda was borrowing funds that FTX’s customers had deposited on the exchange.”

 

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