Tag: FTX

Secret Alameda recording reveals exact moment staff learned about FTX deposits

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A 75-minute secretly recorded audio clip of Caroline Ellison has revealed the exact moment 15 former Alameda Research staff found out the hedge fund was “borrowing” user funds from FTX.  The full-length recording, obtained by Cointelegraph, provides fresh insights into the palpable tension felt by Ellison and Alameda staff in the lead-up to FTX’s collapse. “Alameda was kind of borrowing a bunch of money via open-term loans and using that to make various illiquid investments. So like a bunch of FTX and FTX US equity […] Most of Alameda’s loans…

FTX lost $100m in Terra/UST crash

Defense attorney Mark Cohen cross-examined former Alameda Research CEO Caroline Ellison after the witness said Sam Bankman-Fried cajoled her into making misleading social media statements and ordered loan repayments funded with stolen customer crypto. Witness testimony on day six revealed tenuous months leading to FTX’s collapse marked by subpar corporate practices and buried secrets.  Not only did Bankman-Fried oversee fake financial records sent to lenders like Genesis and hide FTT’s hollow value, per Ellison’s telling, FTX and Alameda also loaned at least $5 billion to select employees for speculative investments…

Changpeng Zhao’s tweet ‘contributed’ to collapse of FTX, claims Caroline Ellison

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According to former Alameda Research CEO Caroline Ellison, a single tweet from Binance CEO Changpeng Zhao (CZ) contributed to the failure of cryptocurrency exchange FTX. Testifying in Sam “SBF” Bankman-Fried’s criminal trial on Oct. 12, Ellison reportedly placed part of the blame for the collapse of FTX on CZ’s social media activity. In the now famous tweet on X (formerly Twitter) from Nov. 6, 2022, CZ announced that Binance would be liquidating its holdings of FTX Token (FTT) “due to recent revelations that have came [sp] to light”. As part…

Did SBF really use FTX traders’ Bitcoin to keep BTC price under $20K?

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Bitcoin (BTC) failed to hit $100,000 during the 2021 bull market because defunct exchange FTX kept selling BTC, analysis claims. In an X post on Oct. 12, Joe Burnett, senior product marketing manager at Bitcoin financial services firm Unchained, joined voices arguing that FTX executives suppressed BTC price strength. FTX testimony reveals mass BTC selling As the trial of former FTX CEO Sam Bankman-Fried, known as SBF, continues, new testimony paints a picture of market manipulation. This week, Caroline Ellison, former CEO of affiliated firm Alameda Research, reportedly told the…

Caroline Ellison Starts Day 3 of Testimony Against Former FTX Crypto Titan

“Bankman-Fried relied on Ellison and he trusted her to act as the CEO and manage the day-to-day,” Cohen said in his opening statement last week. “… As the majority owner of Alameda, he spoke to Ms. Ellison, the CEO, and he urged her to put on a hedge, something that would protect against such a downturn. She didn’t do so at the time, and this also becomes an issue later on, when the storm hit.” Source

FTX paid $100m in Chinese bribes to unfreeze $1b of investigated funds

Caroline Ellison, on day six of United States v Bankman-Fried, testified that FTX’s founder continued to lie to the public while liquidity and assets dried up behind the scenes. The second week of Bankman-Fried’s fraud for fraud allegations set headlines ablaze as former Alameda Research boss Caroline Ellison accounts of “Sam coins” and FTT’s importance in FTX’s financial operations.  FTT was not to fall below $1, Ellison said quoting Sam and discussing the token was a taboo outside of the inner circle which included Ellison herself, Gary Wang (CTO, Alameda/FTX),…

Sam Bankman-Fried considered selling FTX equity to Saudi crown prince, says Caroline Ellison

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Former Alameda Research CEO Caroline Ellison claimed in court that Sam “SBF” Bankman-Fried attempted to raise equity for FTX by considering an investment from Saudi Crown Prince Mohammed bin Salman, or MBS. Addressing the court at SBF’s criminal trial on Oct. 11, Ellison reportedly said she had discussed ways of hedging Alameda investments with Bankman-Fried in 2022. According to the former Alameda CEO, Bankman-Fried said that MBS was a potential investor in the crypto exchange prior to its collapse in November. The potential investment by MBS was one of the…

Caroline Ellison provided 7 ‘alternative’ balance sheets hiding Alameda’s exposure to FTX

Testifying on the sixth day of Sam “SBF” Bankman-Fried’s criminal trial in New York, former Alameda Research CEO Caroline Ellison admitted to providing fudged numbers for review by Genesis. According to reports from the courtroom on Oct. 11, Ellison claimed Bankman-Fried directed her to create “alternative” balance sheets on Alameda’s use of crypto exchange FTX’s funds. She reportedly testified that she had provided 7 spreadsheets, one of which SBF presented to Genesis. The document did not reveal Alameda had borrowed $10 billion from FTX. “Sam said don’t sent the balance…

Sam Bankman-Fried’s Defense Wants to Ask Caroline Ellison About FTX Lawyers’ Advice, Anthropic AI Raise

“This witness who’s on the stand made a personal investment in Anthropic and has knowledge of the company’s investment in Anthropic, and so in the event that the Court deems this admissible, it might be an issue that we want to raise with her,” said the prosecutor, Danielle Sassoon. “We don’t think that this is a permissible topic of questioning, but if it is, we may want to ask her questions about it.” Source