Former Alameda Research CEO Caroline Ellison testified in court, admitting to committing fraud alongside her ex-boyfriend, Sam Bankman-Fried. Ellison claimed that at Bankman-Fried’s direction, Alameda used over $10 billion of FTX customer funds to pay off its loans. She stated that Alameda received between $10 billion and $20 billion of FTX money in its bank account, which FTX used for banking access at Silvergate. Ellison’s claims align with FTX co-founder Gary Wang’s confirmation that Alameda traded with customers’ money using a “special privilege” called “allow negative,” allowing them to withdraw $8 billion beyond what they owned. Ellison also revealed that she deceived Alameda’s creditors by sharing manipulated balance sheets to make the company appear less risky. She disclosed that Bankman-Fried instructed her to include FTX’s exchange token, FTT, on the balance sheet to secure a loan from Genesis. The article also mentions Bankman-Fried’s political ambitions and his connections to politicians.

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Information	Details
Geography	Global
Countries	🇺🇸
Sentiment	negative
Relevance Score	0
People	Caroline Ellison, Zac Prince, Gary Wang, Sam Bankman-Fried
Companies	FTX, Alameda Research, BlockFi, DOJ, Silvergate, LEDN, Binance, Genesis
Currencies	FTX, None Trading
Securities	None