Former Alameda Research CEO Caroline Ellison has accused former FTX CEO Sam Bankman-Fried of instructing her to commit fraud. According to court transcripts from Bankman-Fried’s trial, Ellison claims that Alameda, the trading arm of FTX, used around $14 billion of the exchange’s customers’ funds for investments between 2020 and 2022. Ellison alleges that Bankman-Fried “set up the systems and told us to take the money.” She also states that Alameda deceived lenders by presenting balance sheets that downplayed the company’s riskiness. Ellison reveals that she and Bankman-Fried had a romantic relationship and that he shared his ambition to become the President of the United States. FTX filed for bankruptcy in November 2021 after its native asset collapsed, leading to the suspension of customer withdrawals. Ellison asserts that the exchange was unable to return customers’ funds because Alameda had used them to repay lenders. Bankman-Fried is facing multiple charges, including defrauding customers, mishandling billions of dollars, and making illegal political donations. If convicted, he could face over 100 years in prison. Ellison pleaded guilty to fraud charges in December 2021 and is reportedly cooperating with the prosecution against Bankman-Fried.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Caroline Ellison, Sam Bankman-Fried |
| Companies | United States, FTX, Inner City Press, Alameda Research |
| Currencies | HairyPlotterFTX |
| Securities | None |
