Former Alameda Research CEO Caroline Ellison appeared in court on Tuesday to provide testimony in the alleged crypto fraud case involving her and her ex-boyfriend, Sam Bankman-Fried. Ellison admitted to committing fraud at Bankman-Fried’s direction, claiming that Alameda used over $10 billion of FTX customer funds to pay off its loans. She stated that Alameda had received between $10 billion and $20 billion of FTX money within its bank account, which FTX used for banking access at Silvergate. Ellison’s claims align with those of FTX co-founder Gary Wang, who revealed that Alameda traded with customers’ funds using a feature called “allow negative,” allowing them to withdraw $8 billion beyond their actual holdings. Ellison also admitted to misleading Alameda’s creditors by providing them with manipulated balance sheets to make the company appear less risky. Other crypto lending firms and Trading desks, such as LEDN and Genesis, were directly impacted by Alameda’s actions. Ellison also mentioned that Bankman-Fried instructed her to include FTX’s exchange token, FTT, on Genesis’ balance sheet as part of securing a loan. However, the value of FTT has significantly dropped since then. Ellison and Bankman-Fried were also involved in a personal relationship, starting in the summer of 2020. Bankman-Fried, who had political ambitions and connections, was previously charged with campaign finance violations and bribery. The case brings attention to the risks and potential for fraud within the cryptocurrency industry..
#Heres #SBFs #ExGirlfriend #Court #FTX #Fraud
#Heres #SBFs #ExGirlfriend #Court #FTX #Fraud
