FTX founder Sam Bankman-Fried released on bail

Caroline Ellison and Sam Bankman-Fried Believe they Deceived FTX investors In Court

Caroline Ellison, the former CEO of Alameda Research, said she and FTX co-founder Sam Bankman-Fried deceived lenders about the amount of money the company borrowed from the bitcoin exchange.

According to Bloomberg, Ellison acknowledged her conduct during a December 19 plea appearance in federal court in Manhattan. “I am truly sorry for what I did. I knew it was wrong,” According to a transcript of the hearing, she admitted to financial relationships between her company and FTX.

“From 2019 through 2022, I was aware that Alameda was provided access to a borrowing facility on FTX.com, the cryptocurrency exchange run by Mr. Bankman-Fried,” Ellison said.

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“In practical terms, this arrangement permitted Alameda access to an unlimited line of credit without being required to post collateral, without having negative balances and without being subject to margin calls on FTX.com’s liquidation protocols.”

Bankman-Fried, the disgraced founder of a cryptocurrency exchange, is facing various accusations from the Southern District of New York and the Securities and Exchange Commission.

Conspire to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to engage money laundering, and conspiracy to deceive the Federal Election Commission and other campaign finance crimes are among the allegations.

After being arrested in the Bahamas earlier this month, he was released on a $250 million bond on Thursday. According to federal authorities, he exploited millions of dollars in customer monies to maintain a luxury lifestyle via Alameda.

Ellison said that “if Alameda’s FTX accounts had significant negative balances in any particular currency, it meant that Alameda was borrowing funds that FTX’s customers had deposited on the exchange,” the Bloomberg report said.

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