Caroline Ellison, former CEO of Alameda Research, agreed with Sam Bankman-Fried that they received unlimited loans from FTX.
In federal court, Ellison said that he knowingly misled people about how much he borrowed from FTX and that he knew these actions were wrong.
Caroline Ellison Confesses to Dealing with SBF
According to court minutes obtained by Bloomberg, Ellison used the following statements:
“I was aware that from 2019 to 2022, SBF had access to a loan department at Alameda’s FTX. This arrangement allowed Alameda to access an unlimited line of credit, with no collateral required, with a negative balance, without being subject to margin fulfillment rules in FTX.com’s liquidation protocols.”
Ellison said he and SBF had agreed to hide the deal by creating false financial statements, and he knew that Alameda accounts with negative balances were borrowing funds from FTX customers.
Ellison and former FTX CTO Gary Wang admitted multiple accusations earlier this week regarding the collapse of Alameda and FTX.
However, SBF was extradited to the United States from the Bahamas and appeared in federal court in New York. The judge announced that SBF would be released on a $250 million bail.
“I knew what I was doing was wrong,” Wang said, according to a report received by Bloomberg.