Mathhew RUssel Lee, one of the press, who recetly published a guilty plea record of Caroline Ellison, a Former Alameda Researcg’s CEO. According to her, Ellison explained that she was the CEO of Alameda and during that time, one of her role is to have a direct report to the former FTX CEO Sam Bankman-Fried. According to Caroline Ellison testimony, she is aware everything about the details since 2019 and 2022, where Alameda Research can access to a special borrowing facility that the company can allow and maintain to have a limitless line of loan, with zero collateral. The said borrowing faility which is according to her, was customer funds of FTX.
Its been along from the beginning at all where FTX’s misconduct together with Alameda Research where the minglihs of Customer Funds started
According to the Inner City Press reporters, Matthew Russell Lee posted a tweet storm with screenshots of the unsealed guilty plea transcript of Caroline Ellison. According to Russel Lee, the plea arraignment was secret, and sealed until currently, whereas once Bankman-Fried was freed on a 250 million USD bond. if happened that Caroline’s testimony is true at all, the document will highlighting some digits of infractions, for both FTX and Alameda executives that happened since 2019.
According to the full testimony of Caroline Ellison.
“Since 2019 to 2022 I am aware that the Alameda Reseach was providing access to a borrowing facility in FTX, a creyptocurrency exchange that run by Bankman-Fried, I am very well aware that the executives had implemented some special settings on Alameda’s FTX.com account that permits them (Alameda) to access an unlimited credit line without being required to post a colateral. without having a need to pay an interest with negative balances, and a subject to margin calls or from the FTX’s liquidation protocols.”
Ex Co-CEO and CEO of Alameda, says “Truly Sorry”, for being ware of FTX Customer Funds used to Finance its loan to Alameda.
Ellison was aware that many of Alameda’s investments were illiquid, and she said she fully agreed to borrow funds from FTX’s coffers. “While I was co-CEO and then CEO, I understood that Alameda had numerous large illiquid investments and had lent a lot of money to Mr. Bankman-Fried and other FTX executives,” Ellison’s testimony explains. “I also understood that Alameda had financed the investments with short-term and open-term loans worth several billion dollars from external lenders in the cryptocurrency industry. In or around June 2022, I agreed to borrow several billion dollars from FTX to repay those loans. I understood that FTX would need to use customer funds to finance its loans to Alameda.”
According to her, she is well aware that the majority of Investments of Alameda are liquidity. She agreed that time to borrow funds from the FTX borrowing facility when she was a co-CEO and CEO after, she understand everything that Alameda have some huge and very large illiquid investments that was borrowed to Mr. Bankman-Fried and to other FTX executives.
The testimony also explains that Alameda also financed the investments with short terms and open term borrows worth billion of US dollars. Coming from some external lenders, and from other cryptocurrency companies. During June 2022, she agreed to borrow some several billions from the FTX to pay those loans, and she is fully aware that the FTX will be needing that time their customers funds just to finance its loan to Alameda.
Comments are closed.