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- Caroline Ellison details FTX’s cheating with Alameda and mix-up of client funds that started from the beginning
- Ellison understood that FTX client funds were used to “finance FTX’s loan to Alameda” . Former Alameda CEO is ‘really sorry’ for what she did.
- Billionaire Bill Ackman’s recent FTX Twitter thread denounced
On December 23, 2022, Matthew Russell Lee The Inner City Press has released a copy of Caroline Ellison’s recently unsealed guilty plea, former CEO of Alameda Research. In her statement, Ellison said she was co-CEO and CEO of Alameda, and under those roles, former FTX CEO Sam She Bankman reported directly to Freed (SBF). The testimony of the former Alameda CEO is that she was fully aware that from 2019 to 2022 she had access to a special borrowing facility that allowed Alameda Research to maintain an unsecured and unlimited line of credit. I have detailed that. According to Ellison, the “borrowing facility” was her FTX client funds.
Caroline Ellison details FTX’s cheating with Alameda and mix-up of client funds that started from the beginning
After the opening of Caroline Ellison’s plea bargain ,Inner City Press reporter Matthew Russell Lee published atweet storm featuring screenshots of Ellison’s unsealed transcript of guilty plea. rice field. Russell Lee said the arraignment was “conducted in secret and no charges were filed until today, when Bankman-Fried was released on her $250 million bail.” If Ellison’s testimony is true, the document highlights numerous violations since 2019 involving both FTX and Alameda executives.
Bankman-Fried’s Cryptocurrency Exchange.com. Management Implements Special Settings for Alameda’s FTX.com Account, Alameda Maintains Negative Balances in Fiat and Cryptocurrencies I understand what you have done to make it possible,” said Ellison’s testimony details. “In practice, the arrangement will allow Alameda to never have to post collateral, pay interest on negative balances, be subject to margin calls or FTX.com’s clearing protocol, and have unlimited liquidity. We are now able to access credit lines,” Alameda added.
Ellison’s description of the situation goes on:
If Alameda had a significant negative balance in a particular currency, it would mean that the funds deposited by the customer on the exchange were transferred to Alameda.
Ellison understood that FTX client funds were used to “finance FTX’s loan to Alameda” . Former Alameda CEO is ‘really sorry’ for what she did.
Ellison said Alameda’s investments were illiquid and she was completely obliged to borrow money from her FTX coffers. said they agreed. “When I was co-CEO and then CEO, Alameda was making a number of large, illiquid investments, lending large sums of money to Bankman-Fried and other FTX executives. I understood that,” Ellison’s testimony explains. “I also understood that Alameda was raising investments in short-term and open-term loans worth billions of dollars from lenders outside the cryptocurrency industry. agreed to pay off those loans by borrowing billions of dollars from FTX, with the understanding that FTX would need to use customer funds to finance the loan to Alameda.” 36}
Ellison further added:
Many FTX customers also invest in cryptocurrency derivatives, and most FTX customers We also understand that you did not expect to lend out digital assets and fiat currencies to Deposit to Alameda this way.
Additionally, Ellison alleges that from approximately July 2022 until October 2022, she agreed to SBF to “provide materially misleading financial statements to Alameda’s lenders.” Stated. Ellison said the team provided lenders with false quarterly reports that obfuscated the “scope of Alameda’s borrowing.” The former Alameda CEO also elaborated that he was aware that FTX equity investors were not informed about the nature of the hybrid relationship between FTX and Alameda. We have agreed not to publicly disclose the nature of Alameda’s relationship with FTX, including the arrangement, and we understand that Bankman-Fried and others have concealed the source and nature of the funds,” Ellison said in a statement detailing the situation. I’m explaining.
According to her alleged ex-girlfriend at SBF, she said Ellison was very sorry for what she had done. At the end of her transcript, she apologizes profusely for what she has done. Her testimony of Ellison differs significantly from her SBF testimony that she was able to do media tours for a month before her arrest and that she apologized for many things. SBF has apologized for many things, but has never admitted wrongdoing regarding fraud or financial misconduct.SBF further stated that she does not run Alameda Research, and said that she did not know about the trading company’s business dealings. He stressed that he knew very little. Speaking virtually with Andrew Ross Sorkin at the New York Times’ Dealbook Summit, SBF claimed it “did not deliberately mix the funds.”
As far as Alameda Research is concerned, the SBF stated:
I didn’t know the size of their position. I wasn’t running his Alameda—I didn’t know exactly what was going on.
Ellison’s unsealed testimony completely contradicts his media SBF position on her during her tour, and not only does she apologize, but she personally It also describes the many evil deeds he committed. “I’m really sorry for what I did,” Ellison concluded. “I knew it was wrong. I would like to apologize to the affected FTX customers, Alameda lenders and FTX investors for my actions.” Nov 2022 Since the bankruptcies of FTX and Alameda in May, I have worked hard to help our clients recover their assets and cooperate with government investigations.Today, I plead guilty and take responsibility for my actions. I am here to accept.” When the judge asked Ellison if she knew what she had done was illegal, she replied, “Yes.”
Billionaire Bill Ackman’s recent FTX Twitter thread denounced
Interestingly, billionaire Bill Ackman About tweeted the day before Dec. 22, a cohort decided to describe the case as a business “failure.” Ackman wrote:Ackman’s latest FTX Twitter thread was not received He was convicted of starting a fraud with SBF and his FTX from the beginning He is well described by the majority of commenters who told Ackman that he is. Ellison’s testimony even points out that her special Alameda treatment and mix of client funds began in 2019.
For example, Bitcoin advocate Nick Carter replied to Ackman thatsaid: “They’ve been scamming since day one.” Coinshares executive Meltem Demirors also responded to Ackman’s tweet,saying: Ackman claimed several times in threads that FTX was a “legitimate and profitable exchange started by MIT” I reminded you that you may need to read the SEC billing before you graduate with backing from top VCs at massive valuations.
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