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Caroline ellison, the former CEO of alameda research, said in its argument that it knew that FTX funds had been made available for the venture capital company's investments.
In a transcript of his plea proceedings in the South District of New York published on December 23rd, ellison recognized the financial links between ftx and alameda at the centre of the lawsuit against the former CEO of ftx sam bankman-fried. According to Alameda's former managing director, Alameda had access to a "borrowing facility" via ftx between 2019 and 2022.
"I realized that ftx executives had implemented special parameters on the alameda ftx.com account that allowed alameda to maintain negative balances in various fiduciary and cryptocurrency currencies," said Ellison. "practically speaking, this arrangement made it possible for alameda to have access to an unlimited line of credit without having to post a guarantee, with no interest on negative balances and no margin calls or liquidation protocols from ftx.com. She added:
“If Alameda's FTX accounts had significant negative balances in a particular currency, it meant that Alameda was borrowing funds that FTX's customers had deposited onto the exchange.”
OK - on #FTX / Alameda, here now the unsealed guilty plea transcript of Caroline Ellison - it was held in secret, and not docketed until today, once Bankman-Fried was freed on $250 mln bond. Thread then stories on https://t.co/3AcCBJNU41 and pic.twitter.com/Ptd0L1u9oL
— Inner City Press (@innercitypress) December 23, 2022
Ellison’s statement included allegations that Bankman-Fried and other FTX executives had borrowed funds from Alameda, and used FTX funds to repay “loans worth several billion dollars." The statement of 23 December 2022Ellison included allegations that Bankman-Fried and other FTX leaders borrowed money from Alameda and used FTX funds to repay "multi-billion dollar loans."
"I feel really bad about what I did," said Ellison. "I'm really sorry for what I did," Ellison declared.
Related: Crypto Twitter confused by SBF’s $250M bail and a return to luxury
Ellison’s plea deal, released on Dec. 21, largely spared the former Alameda CEO of many of the charges Bankman-Fried currently faces including wire fraud and securities fraud. Related: Crypto Twitter mixed up by SBF's $250M bail and a comeback to luxuryEllison's plea, published the 21st of December, has spared the former CEO of Alameda much of the current charges against Bankman-Fried, including inter-bank transfer fraud and securities fraud.
U.S. The agreement set bail at $250,000 on the condition that she return all travel documents. Bankman-fried was extradited by the authorities in the Bahamas on 12 December. Prosecutors allowed the former FTX CEO home detention with an ankle bracelet following a $250 million bond put up by his parents. Prosecutors have authorized the former CEO of FTX to house arrest with a bracelet on his ankle as a result of a $250 million bail from his parents. Prosecutors have authorized the former CEO of the FTX to house arrest with a bracelet on his ankle as a result of a $250 million bail from his parents.
