{"id":447339,"date":"2023-10-12T16:29:34","date_gmt":"2023-10-12T16:29:34","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=447339"},"modified":"2023-10-12T16:29:34","modified_gmt":"2023-10-12T16:29:34","slug":"caroline-ellison-says-sam-told-me-to-as-she-reveals-deceit-bribes-at-ftx","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/caroline-ellison-says-sam-told-me-to-as-she-reveals-deceit-bribes-at-ftx","title":{"rendered":"Caroline Ellison Says ‘Sam Told Me To’ As She Reveals Deceit, Bribes at FTX"},"content":{"rendered":"

Star witness Caroline Ellison wept at the end of a second day of testimony against former boyfriend Sam Bankman-Fried as she described a web of deceit at the collapsed FTX crypto exchange he founded<\/span><\/p>\n

Ellison’s<\/a> voice trembled as she recalled the “worst week of my life,” and said that when the<\/span> truth about their deceitful actions was revealed, “I felt a sense of relief that I didn’t have to lie anymore.”  <\/span><\/p>\n

Dishonest Balance Sheet<\/span><\/h2>\n

At the core of the deception was a balance sheet document that led to the collapse of Bankman-Fried’s companies. <\/span><\/span>Ellison said it was deliberately designed to mislead lenders, presenting a false picture of affiliate Alameda Research’s financial health. <\/span><\/p>\n

She called it a “dishonest” document and revealed that even with manipulated numbers, it still showed significant risks for hedge funds.<\/span><\/p>\n

Caroline Ellison Ordered To Use FTX Funds For Alameda<\/h2>\n

Ellison said that Bankman-Fried, who is on trial on charges of fraud and conspiracy, instructed her to use FTX customer funds to repay Alameda Research’s lenders, even though she had strong concerns about it.<\/span><\/p>\n

The decline of the crypto token Luna in May 2022 triggered a market downturn, prompting creditors to recall loans. This put the company in a vulnerable situation as it relied on FTX customer funds that could be withdrawn at any moment, she said.<\/span><\/p>\n

\n

AUSA: Let's pull up GX 1987. Where were you when the leak happened?
Ellison: On vacation in Japan. I decided not to comment.
AUSA: What did the leaked balance sheet show?
Ellison: It understated things, it was dishonest, but it still showed risk, FTT<\/p>\n

— Inner City Press (@innercitypress) October 11, 2023<\/a><\/p><\/blockquote>\n