- Caroline Ellison accuses Sam Bankman-Fried of inflicting FTX’s collapse.
- Ellison claims Bankman-Fried pressured her to create pretend stability sheets to cover debt.
- FTX’s scandal widens as former CTO Gary Wang additionally testifies about false insurance coverage fund figures.
The drama following the fraud trial surrounding the bankrupt FTX alternate, which was the second-largest buying and selling platform at its peak, has taken a brand new flip. In a current revelation, Caroline Ellison, the previous Chief Govt Officer of Alameda Analysis, an FTX-affiliated buying and selling agency, has directed the blame of FTX’s insolvency at FTX co-founder Sam Bankman-Fried.
In keeping with a current report on Bloomberg, Ellison asserted that Bankman-Fried was the driving drive behind the collapse of FTX. The report famous that Ellison vehemently refuted Bankman-Fried’s efforts to shift blame onto her. The previous Alameda Analysis CEO alleged that Bankman-Fried pressured her to generate falsified stability sheets to hide mounting money owed.
Notably, this bombshell disclosure comes after the crypto market turmoil in June 2022, throughout which each Ellison and Bankman-Fried grappled with a considerable shortfall in Alameda Analysis’s stability sheet. The center of the matter was that the FTX’s affiliated hedge fund had borrowed billions of {dollars} of shoppers’ crypto deposits inside the alternate.
Ellison confronted a ethical and moral dilemma relating to the precarious state of their operation. However in line with her account, Bankman-Fried got here ahead with an answer. The answer was the creation of recent, albeit fraudulent, stability sheets. Ellison alleges that she, beneath his directive, drafted seven such deceptive monetary paperwork.
These allegations have thrust the crypto group into disarray because the accountability battle between Ellison and Bankman-Fried takes heart stage. In the meantime, Ellison just isn’t the one FTX enterprise insider who has testified in opposition to Bankman-Fried. Like Ellison, FTX’s former chief expertise officer Gary Wang has narrated how the bankrupt agency falsified Insurance coverage Fund figures to the jury.
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