Former Alameda Research CEO Caroline Ellison says she and FTX co-founder Sam Bankman-Fried misled lenders about how much the company owed from crypto exchanges. rice field.
Bloomberg reported that Ellison clarified his actions during a judicial hearing at federal court in Manhattan on Dec. 19.
“I’m really sorry for what I did. I knew it was wrong,” she said, according to the hearing minutes.
Judge Allows FTX Founder Sam Bankman-Fried To Be Released With $250 Million Bond To Parents’ Palo Alto Home
“I was aware that from 2019 to 2022, Alameda was provided access to borrowing facilities of FTX.com, a cryptocurrency exchange operated by Bankman-Fried,” Ellison said. . “In effect, the arrangement will allow Alameda to access unlimited lines of credit without the need to post collateral, have no negative balances, and be subject to margin calls on FTX.com’s clearing protocol. I did.”
Bankman-Fried, 30, Shame Crypto exchange founder, He faces multiple charges from the Southern District of New York and the Securities and Exchange Commission.
The charges included conspiracy to commit wire fraud, conspiracy to commit wire fraud, conspiracy to commit merchandise fraud, conspiracy to commit securities fraud, conspiracy to launder money, conspiracy to deceive the Federal Election Commission and commit campaign finance violations. increase.
He was released Thursday on $250 million bail after being arrested in the Bahamas earlier this month.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Federal prosecutors said he used millions of dollars in client funds to fund a lavish lifestyle through Alameda.
According to a Bloomberg report, Ellison said, “If Alameda’s FTX account has a significant negative balance in a particular currency, it means that Alameda owed funds that FTX customers deposited with the exchange. I will,’ he said.
Leave a Comment