2023-10-11 15:07:16
Former Alameda Research CEO Caroline Ellison testified yesterday against Sam Bankman-Fried, accused of cryptocurrency fraud. According to her, her ex-partner forced her to scam people. “He directed me to commit these crimes. Alameda stole billions of dollars from FTX customers and used it for investments,” he claimed. Related: FTX secrets revealed: founders were allowed to withdraw unlimited amounts of money from the stock market He went on to admit that Alameda used a total of $10 billion in funds from FTX clients’ assets. He went on to explain how he tried to save the unsaved and get out of debt: “I thought the Alameda situation was risky,” he recalled. He did not believe that the company’s balance sheet would inspire confidence in creditors. That’s when Bankman-Fried suggested adding Paper Bird to the balance sheet to make Alameda look less risky. Paper Bird is one of the companies revealed to be owned by Bankman-Fried amid the FTX scandal. When the crypto exchange filed for bankruptcy protection, it was also revealed that Paper Bird owed $2.3 billion to Alameda Research. Ellison sees no chance that Alameda will be able to repay its debt anytime soon — even if it has access to FTX’s customer funds. The prosecutor said in his opening statement that Carolnie Ellison was named as the CEO of Alameda Research, but Bankman-Fried was the one who “ran things.” According to the New York Times, Ellison is happy with the collapse of the FTX empire and admitted that he was not up to running Alameda. Bankman-Fried was arrested a month after FTX filed for bankruptcy. He now faces seven criminal charges, and his trial is expected to last two months.
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