In the weeks and months before the catastrophic collapse of crypto exchange FTX, shocking details emerged about former CEO Sam Bankman-Fried’s concerns and actions. These revelations, found in former Alameda Research CEO Caroline Ellison’s personal notes, were presented in court during her testimony in New York. Caroline Ellison, former CEO of Alameda Research and former partner of FTX founder Sam Bankman-Fried (SBF), took the podium yesterday evening. She gave critical testimony in ftx’s ongoing fraud case. Ellison’s statements pointed to an alleged conspiracy to manipulate Bitcoin prices. She also shed new light on misuse of customer funds in the cryptocurrency space. Here are the details…
Ellison shocked over Bitcoin price manipulation
Former CEO of Alameda Research, Caroline Ellison, revealed her shocking statements in the FTX case. Ellison’s statements were eagerly awaited, as FTX’s collapse was heavily linked to Alameda. Not to disappoint the audience’s curiosity, Ellison shared shocking statements, especially about Bitcoin price manipulation. The former CEO of Alameda Research stated that SBF conspired to sell Bitcoin in order to artificially suppress the price of Bitcoin below the $20,000 level.
According to Ellison’s testimony, SBF directed Alameda to sell Bitcoin obtained from FTX client funds, ostensibly to stabilize prices. Ellison also admitted to improperly using FTX customer deposits to pay off Alameda’s debts of approximately $10 billion. As customers rushed to withdraw their funds in November 2022, both FTX and Alameda were left without sufficient reserves. cryptokoin.com As we reported, this led to the collapse of FTX.
The same move was made for FTT
Additionally, Ellison revealed that SBF ordered Alameda to aggressively buy and sell its native FTX token, FTT, to maintain its peg when its prices dropped. This further implicates SBF in allegations of misuse of customer funds and manipulation of cryptocurrency markets. Ellison argues that he followed SBF’s orders, made misleading statements to lenders, and effectively committed crimes along with the founder.
The testimony given by Caroline Ellison provides a detailed look at the complex workings of Alameda and FTX. It reveals reckless business practices and meddling of operations between the two organizations in the run-up to bankruptcy. Caroline Ellison’s role as a star witness has dealt a significant blow to SBF’s defense in the ongoing trial. If convicted of all charges, SBF could be sentenced to up to 115 years in prison.
They offered alternative spreadsheets
Alarmingly, Ellison revealed that, at Bankman-Fried’s request, Alameda created “alternate” spreadsheets to hide its financial obligations to FTX, thus presenting lenders with a more positive financial picture and preventing them from demanding full repayments. Amidst this financial turmoil, Ellison shared moments of emotional distress, emphasizing that he was constantly worried about the possibility of customers withdrawing their funds from FTX during the liquidity crisis in Alameda.
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