Did Alameda research CEO Caroline Ellison mislead lenders about FTX?

Former Alameda Research CEO Caroline Ellison said she and FTX co-founder Sam Bankman-Fried knowingly misled lenders about how much the now-bankrupt trading firm was borrowing from the cryptocurrency exchange. Ellison gave her first public account of her actions in a Dec. 19 plea hearing in Manhattan federal court.

Who is FTX co-founder Sam Bankman-fried?

In this courtroom sketch, Caroline Ellison, right, testifies as she is questioned by Assistant U.S. Attorney Danielle Sassoon as FTX co-founder Sam Bankman-Fried, far left, looks on in Manhattan federal court, Tuesday, Oct. 10, 2023, in New York.

Did Alameda owe $9 billion to FTX?

Ms. Ellison said she and Mr. Bankman-Fried had been concerned that if they gave Genesis an accurate balance sheet that showed Alameda owed $9 billion to FTX for its customer borrowing, it might become public and destabilize Alameda and FTX. At “Sam’s direction,” she said, she sent the misleading balance sheet to Genesis.

Who are Caroline Ellison and FTX co-founder Gary Wang?

Former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang are cooperating with prosecutors, the U.S. attorney for Southern New York said in a video statement. Ellison and Wang were charged “in connection with their roles in the frauds that contributed to FTX’s collapse,” U.S. Attorney Damian Williams said.