[ad_1]
Former CEO of bankrupt algorithmic trading firm Alameda, Caroline Ellison, told a judge that she had dishonored former FTX CEO Sam Bankman for providing “materially misleading financial statements to Alameda’s lenders.” He said he agreed with Freed.
According to a copy of her court assignment, which was filed Dec. 19 but was sealed until Bankman-Fried was released on a $250 million bond three days later, Ellison was named a U.S. District Judge. told Ronnie Abrams of “I knew it was wrong.”
The court asked her to clarify. “Did you also know that it was illegal?”
“Yes,” Ellison replied.
Ellison, along with FTX co-founder Gary Wang, pleaded guilty last week to federal indictments of being involved in fraud that contributed to the demise of FTX, and both are cooperating with the Southern District of New York. News of their plea deal was withheld until Bankman-Fried was en route from the Bahamas to the United States.
The misleading financial statements came in the form of “a quarterly balance sheet that hid the extent of Alameda’s borrowings and billions of dollars of loans made by Alameda,” Ellison explained.
“I have agreed with Bankman-Fried and others not to publicly disclose the nature of Alameda’s relationship with FTX, including Alameda’s credit arrangements,” she said.
Transcripts were reviewed and reported separately. new york times, ReutersWhen bloombergThere was also a part It was published Matthew Russell Lee on Twitter Inner City Press.
Ellison’s statement confirmed earlier reports that Alameda received special treatment from FTX and was free to withdraw money from sister companies.
“I understand that FTX executives have implemented special settings on Alameda’s FTX.com account to allow Alameda to maintain negative balances in various fiat and cryptocurrencies,” she said. . “In practice, the arrangement will allow Alameda to have unlimited cash without having to post collateral, pay interest on negative balances, be subject to margin calls or her FTX.com clearing protocol, and have unlimited cash flow. You can now access a line of credit for
Ellison further admitted that she and others knew when Alameda was overused and what that meant.
“I understand that if an Alameda FTX account has a significant negative balance in a particular currency, it means that Alameda owes funds that FTX customers have deposited with the exchange.”
As for Bankman-Fried, Ellison said he and other executives had loans from Alameda, which had made “a number of large, illiquid venture investments.”
To pay off those loans, Ellison said he “agreed” to borrow billions of dollars from FTX.
“We understood that FTX would need to use customer money to finance the loan to Alameda,” she said. “Most FTX customers did not expect to lend their digital assets and fiat deposits held by FTX to Alameda in this way.”
Ellison also had a message for victims of corporate collapse.
“I want to apologize for my actions towards the affected FTX customers, Alameda lenders, and FTX investors,” she said. We have worked hard to assist in the recovery of our assets for our benefit and to cooperate with the government’s investigation.”
“I am here today to admit my guilt and accept responsibility for my actions,” she concluded.
Stay on top of crypto news and get daily updates in your inbox.
[ad_2]
Source link
