Caroline Ellison, the former Chief Executive Officer of Alameda Research, pleaded guilty recently, admitting that she was aware of the activities that were taking place from 2019 to 2022.
Reportedly, Alameda Research was granted unlimited access to the borrowing facility of FTX. In other words, Alameda had unrestricted access to the line of credit without maintaining the basic balance or showing post-collateral.
Gary Wang, the co-founder of FTX, pleaded guilty and provided a statement. Both are currently collaborating with federal prosecutors in Manhattan over fraud charges.
According to a separate statement by Ellison, she agreed with Sam not to promote the fact that the funds used by Alameda were to FTX consumers.
Wang’s statement highlights that he was directed to make changes to the code of the platform to give Alameda special privileges. Wang, FTX’s former Chief Technology Officer, asserts that customers and investors were undoubtedly misled.
(By David Cox)
Related News:
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Alameda’s Caroline Ellison and FTX’s Gary Wang Hit With Additional Fraud Charges
Sam Bankman-Fried, FTX Misled Investors, Lent Billions to Alameda, Caroline Ellison Says
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