Former CEO of Alameda Research, Caroline Ellison, has made shocking revelations during a secret recording obtained by prosecutors. In the recording, Ellison alleges that Sam Bankman-Fried, the founder of Alameda and FTX, used FTX customer funds to repay loans. The recording, made by an employee who had been with the company for only three days, became crucial evidence in the ongoing legal proceedings. Ellison’s confession starkly contrasted her earlier testimony during cross-examination by Bankman-Fried’s defense team. Another employee, Christian Drappi, testified that he was unaware of Bankman-Fried’s alleged conspiracy until he came across a tweet from Bankman-Fried announcing a “strategic transaction with Binance for FTX.com.” Ellison confirmed the announcement and disclosed that FTX had used Alameda funds to cover a shortfall in user funds. She explained that Alameda had borrowed money for illiquid investments and ended up borrowing funds from FTX. Ellison eventually revealed that Bankman-Fried, herself, Gary Wang, and Nishad Singh were aware of the withdrawal of customer funds.

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Information	Details
Geography	Asia
Countries	🇭🇰
Sentiment	negative
Relevance Score	1
People	Gary Wang, Christian Drappi, Sam Bankman-Fried, Tony Qian, Caroline Ellison
Companies	Binance, FTX, Alameda Research
Currencies	HairyPlotterFTX
Securities	None