Caroline Ellison testifies in court that she intentionally deceived lenders

According to Bloomberg News, Caroline Ellison told a federal court in New York that she intentionally deceived bankers about how much the company had borrowed.

Caroline Ellison, the former CEO of Alameda Research, told a federal court in New York on December 19 that she intentionally deceived lenders about how much the company had borrowed from the defunct FTX cryptocurrency exchange, according to a transcript of a plea hearing obtained by Bloomberg News.

“From 2019 through 2022, I was aware that Alameda had access to a borrowing facility on, the cryptocurrency exchange operated by Mr Bankman-Fried,” Ellison said, according to a transcript obtained by Bloomberg. “This agreement gave Alameda real access to a limitless line of credit without the need for collateral, negative balances, or margin calls on’s liquidation methods.

Ellison said that she and former FTX CEO Sam Bankman-Fried had agreed to conceal the arrangement by issuing fake financial statements, and she was aware that Alameda accounts with negative balances indicated that the company had borrowed from FTX clients.

Ellison and FTX co-founder and former CTO Gary Wang admitted guilt to various crimes relating to the collapse of Alameda and FTX earlier this week. Thursday, Bankman-Fried was extradited to the United States from the Bahamas and appeared in federal court in New York, where a judge said he would be freed on a $250 million bail package pending trial.

Bloomberg reported that Wang said at his guilty hearing that he had been “ordered” to alter code he knew would provide Alameda immense power. Wang said in a transcript quoted by Bloomberg, “I understood what I was doing was improper.”

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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