Former Alameda Research CEO Caroline Ellison said that she and FTX co-founder Sam Bankman-Freed were well aware of the intricacies of Alameda's FTX lending. During a public hearing in federal court in Manhattan, Caroline Ellison stated that she understood the wrongness and illegality of her actions.. Sam Bankman-Fried has previously said on multiple occasions that he was unaware of the significant cash gap caused by Alameda lending.. But Ellison completely denied his words: “I knew that from 2019 to 2022, Alameda had access to the FTX credit line.. In practice, this arrangement allowed Alameda to leverage indefinitely, without the need for collateral, negative balances, and margin requirements on FTX.com's liquidation protocols,” said Alameda's former CEO. In essence, Alameda could draw on FTX liquidity indefinitely, which was backed by user and lender funds.. According to FTX co-founder Gary Wan, he was instructed to change the site code to give the Alameda platform special privileges.. He acknowledged that he was aware of the illegality of his actions. Allison and Wang previously pleaded guilty to fraud.. They face up to 110 and 50 years in prison, respectively.
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Caroline Ellison: “Sam and I deliberately defrauded FTX and Alameda creditors”
