Alameda Former CEO Admits To Misusing FTX’s Customer Funds, Here’s What She Said!

Alameda’s Former CEO Admits To Misusing FTX’s Customer Funds, Here’s What She Said! 

Caroline Ellison, the former CEO of Sam Bankman-Fried’s hedge fund, Alameda Research, has personally admitted to concealing billions of dollars worth of loans as well as knowingly defrauding customers and investors in her December 19th plea hearing.

Ellison’s Statements

The former CEO admitted to U.S District Judge Ronnie Abrams that she allowed for a number of lending arrangements between Alameda and collapsed crypto exchange FTX. 

“While I was co-CEO and then CEO, I understood that Alameda had made numerous large illiquid venture investments and had lent money to Mr. Bankman-Fried and other FTX executives. In and around June 2022, I agreed with others to borrow several billion dollars from FTX to repay those loans.” Ellison said.

She also admitted to being fully aware that FTX would use their own customers’ funds to lend money to Alameda, stating “I understood that FTX would need to use customer funds to finance its loans to Alameda…Most FTX customers did not expect that FTX would lend their digital asset holdings and fiat currency deposits to Alameda in this fashion.”

Related: Binance’s CZ Addresses Reason Behind Binance FUD 

Ellison also admits to the judge about the extent of her and SBF’s dealings. “We prepared certain quarterly balance sheets that concealed the extent of Alameda’s borrowing and the billions of dollars in loans that Alameda had made to FTX executives and to related parties.”

Latest Update On SBF

In other news, the reported “mastermind” behind the collapse of FTX and Alameda, Sam Bankman-Fried himself has recently been released from custody following a massive $250 million bail.

This bond agreement will see SBF house arrested and remain at parents’ home in San Francisco until his next scheduled hearing on January 3rd in New York City. Aside from that, the former FTX CEO has since remained quiet and made no public statements.

Related: How Sam Bankman-Fried (SBF) Paid For His $250M Bail!

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