Caroline Ellison Admits To Intentionally Misled Lenders

Key Points:

  • Sam Bankman-Fried and Ellison had agreed to conceal the arrangement by fabricating fake financial statements.
  • Wang stated at his guilty hearing that he was “directed” to make changes in the code.
According to a Bloomberg report on December 24, Caroline Ellison, the former CEO of Alameda Research, testified in federal court in New York that she knew she was acting improperly when she knowingly misled lenders about how much the company had been borrowing from the defunct FTX cryptocurrency exchange.
Caroline Ellison Admits To Intentionally Misled Lenders

Ellison admitted her wrong in Manhattan federal court, according to a transcript of the hearing.

From 2019 through 2022, I was aware that Alameda was provided access to a borrowing facility on FTX.com, the cryptocurrency exchange run by Mr. Bankman-Fried, In practical terms, this arrangement permitted Alameda access to an unlimited line of credit without being required to post collateral, without having negative balances and without being subject to margin calls on FTX.com’s liquidation protocols.

Ellison said

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

As Coincu previously reported, Ellison and FTX co-founder and former CTO Gary Wang pled guilty to several offenses linked to the collapse of Alameda and FTX earlier this week. Bankman-Fried was extradited to the United States from the Bahamas and appeared in federal court in New York on Thursday, where a judge announced he’d be freed on a $250 million bail while awaiting trial.

Caroline Ellison Admits To Intentionally Misled Lenders

While, Bankman-Fried, 30, is accused of arranging a multi-year scam in which he utilized FTX client cash for personal expenses and high-risk bets through Alameda.

Additionally, Bloomberg reported that Wang stated at his guilty hearing that he was “directed” to make changes in code that he knew would provide Alameda extraordinary powers. While Coincu had reported on November 30 that Sam Bankman-Fried was saying in the interview with Tiffany Fong that he “does not know how to code”.

I knew what I was doing was wrong.

Wang said

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Thana

Coincu News

Caroline Ellison Admits To Intentionally Misled Lenders

Key Points:

  • Sam Bankman-Fried and Ellison had agreed to conceal the arrangement by fabricating fake financial statements.
  • Wang stated at his guilty hearing that he was “directed” to make changes in the code.
According to a Bloomberg report on December 24, Caroline Ellison, the former CEO of Alameda Research, testified in federal court in New York that she knew she was acting improperly when she knowingly misled lenders about how much the company had been borrowing from the defunct FTX cryptocurrency exchange.
Caroline Ellison Admits To Intentionally Misled Lenders

Ellison admitted her wrong in Manhattan federal court, according to a transcript of the hearing.

From 2019 through 2022, I was aware that Alameda was provided access to a borrowing facility on FTX.com, the cryptocurrency exchange run by Mr. Bankman-Fried, In practical terms, this arrangement permitted Alameda access to an unlimited line of credit without being required to post collateral, without having negative balances and without being subject to margin calls on FTX.com’s liquidation protocols.

Ellison said

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

As Coincu previously reported, Ellison and FTX co-founder and former CTO Gary Wang pled guilty to several offenses linked to the collapse of Alameda and FTX earlier this week. Bankman-Fried was extradited to the United States from the Bahamas and appeared in federal court in New York on Thursday, where a judge announced he’d be freed on a $250 million bail while awaiting trial.

Caroline Ellison Admits To Intentionally Misled Lenders

While, Bankman-Fried, 30, is accused of arranging a multi-year scam in which he utilized FTX client cash for personal expenses and high-risk bets through Alameda.

Additionally, Bloomberg reported that Wang stated at his guilty hearing that he was “directed” to make changes in code that he knew would provide Alameda extraordinary powers. While Coincu had reported on November 30 that Sam Bankman-Fried was saying in the interview with Tiffany Fong that he “does not know how to code”.

I knew what I was doing was wrong.

Wang said

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Thana

Coincu News

Visited 69 times, 3 visit(s) today