Alameda CEO Caroline Ellison Confesses to Guilt: “We Got A Deal With SBF!”

According to Caroline Ellison, former CEO of Alameda Research, Sam Bankman-Fried and other FTX executives received billions of dollars in confidential loans from Alameda. Ellison pleaded guilty to charges in court about his role in the stock market crash.

Caroline Ellison Confesses Agreeing With FTX CEO Sam Bankman-Fried on Unlimited Loans

Caroline Ellison, former CEO of Alameda Research, agreed with Sam Bankman-Fried to conceal that FTX could borrow unlimited amounts from Alameda from its investors, lenders, and clients, according to the minutes of the December 19 defense hearing, which was declassified Friday. He said he agreed.

According to the record, Ellison told US District Judge Ronnie Abrams in Manhattan federal court, “We have prepared some quarterly balance sheets that hide the size of Alameda’s borrowing and the billions of dollars in loans Alameda has made to cryptocurrency exchange FTX executives and related parties.”

Ellison is collaborating with prosecutors as part of the plea deal.

Bankman-Fried is accused of orchestrating a “historic” fraud that resulted in the loss of billions of dollars in client and investor funds.

Sam Bankman-Fried was released on $250 million bail Thursday. He admitted risk management mistakes at FTX but said he did not believe he had criminal responsibility and did not make a plea.

Elon Musk raised an allegation about the links between Sam Bankman-Fried, Caroline Ellison and SEC chairman Gary Gensler during the collapse of FTX. However, an SEC member who had multiple meetings and dinner with CEO Sam Bankman-Fried before FTX collapsed resigned today.

*Not investment advice.