A secretly recorded audio clip has revealed the moment when former staff members of hedge fund Alameda Research discovered that the fund had been “borrowing” user funds from FTX. The 75-minute recording, obtained by Cointelegraph, sheds light on the tension felt by Caroline Ellison and other Alameda staff leading up to FTX’s collapse. Ellison explained during a meeting that Alameda had borrowed money through open-term loans and used it for illiquid investments, including FTX and FTX US equity. This led to a shortfall in user funds at FTX. The recording was played in court during the trial of Sam Bankman-Fried, with former software engineer Christian Drappi testifying about his surprise at learning about the misuse of FTX customer deposits. Drappi asked Ellison when she became aware of this and who else at the company knew about it. The tense meeting ultimately led to many employees leaving the company.

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