Caroline Ellison Blames FTX Collapse Caused Solely By Sam Bankman-Fried
- Caroline Ellison, the CEO of Alameda Research, testified that Sam Bankman-Fried asked her to create false balance sheets to conceal the debt.
- Alameda and FTX collapse caused by Bankman-Fried, despite his claims that Ellison was in charge of Alameda’s borrowing.
Caroline Ellison, the chief executive officer of Alameda Research, testified in the fraud trial of FTX co-founder Sam Bankman-Fried, revealing details about Alameda and FTX Collapse Causes.
Ellison described how FTX’s affiliated hedge fund had borrowed billions of dollars from the cryptocurrency exchange’s deposits, creating a massive hole in Alameda Research’s balance sheet. Bankman-Fried asked Ellison to create alternative balance sheets to conceal the debt, but Ellison felt a sense of relief when the companies eventually collapsed.
Sam was the one who caused FTX Collapse
She testified that Bankman-Fried was primarily responsible for the leveraged position that led to the collapse, despite his claims that she was in charge of Alameda’s borrowing.
“But Sam was the one who chose to make all these investments that put us in a leveraged position in the first place.”Ellison said
Added to the FTX collapse cause, Ellison detailed the growing sense of crisis in the crypto industry and the pressure she felt as Alameda borrowed billions from FTX. Bankman-Fried directed her to create false balance sheets and later blamed her for the worsening situation.
She further revealed that Bankman-Fried sought the help of a foreign government in the past, mentioning a “large bribe” paid to Chinese officials to unfreeze $1 billion in Alameda funds. Ellison admitted to lying to other employees about the bribe.
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