A secretly recorded audio clip has revealed the moment when former staff members of hedge fund Alameda Research discovered that the fund had been “borrowing” user funds from FTX. The 75-minute recording, obtained by Cointelegraph, sheds light on the tension felt by Caroline Ellison and other Alameda staff leading up to FTX’s collapse. Ellison explained during a meeting that Alameda had borrowed money through open-term loans and used it for illiquid investments, including FTX and FTX US equity. This led to a shortfall in user funds at FTX. The recording was played in court during the trial of Sam Bankman-Fried, with former software engineer Christian Drappi testifying about his surprise at learning about the misuse of FTX customer deposits. Drappi asked Ellison when she became aware of this and who else at the company knew about it. The tense meeting ultimately led to many employees leaving the company.
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 | Asia |
| Countries | ðŸ‡ðŸ‡° |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Caroline Ellison, Aditya Baradwaj, Christian Drappi, Sam Bankman-Fried |
| Companies | FTX, Binance, Alameda Research |
| Currencies | HairyPlotterFTX |
| Securities | None |
