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Gungun Bhatia
Dec 24, 2022
by Gungun Bhatia

Caroline Ellison Claims She Deliberately Deceived Lenders: Bloomberg

Caroline Ellison

Table of contents

  1. Transcription of Caroline Ellison
  2. Alameda Banks Borrowed Money From FTX
According to a transcript of a plea hearing, Caroline Ellison, the former CEO of Alameda Research, testified in federal court in New York that she understood she was acting improperly. She knowingly swindled lenders regarding the amount the company had been borrowing from the defunct FTX cryptocurrency exchange.

Transcription of Caroline Ellison

As per the transcription reported by Bloomberg, Ellison stated that she was aware that Alameda was granted access to a lending facility on FTX.com, the cryptocurrency exchange controlled by Mr. Bankman-Fried, from 2019 until 2022. She further stated that this arrangement gave Alameda exposure to a limitless line of credit without needing to deposit collateral, maintain negative balances, or experience margin requirements under FTX.com's liquidation processes.

Alameda Banks Borrowed Money From FTX

Sam Bankman-Fried, the former CEO of FTX, and Ellison conspired to conceal the arrangement by fabricating fake financial statements, according to Ellison, who also claimed to be aware of Alameda banks with negative balances indicating the company was borrowing money from FTX clients.

Earlier this week, Ellison and former CTO and co-founder of FTX Gary Wang admitted guilt to several offenses associated with the failure of Alameda and FTX. A judge announced that Bankman-Fried, extradited to the United States from the Bahamas, will be freed on a $250 million bail package while he awaits trial when he appeared in federal court in New York on Thursday.

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Caroline Ellison Claims She Deliberately Deceived Lenders: Bloomberg
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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