Sam Bankman-Fried and other executives at cryptocurrency exchange FTX received billions of dollars in secret loans from Alameda Research, the former president of Alameda told a judge.
Caroline Ellison, the former chief executive of Alameda Research, said she and Bankman-Fried agreed to hide from FTX investors and clients that Alameda could borrow unlimited sums from the exchange, according to a Dec. Friday (23).
To the judge, she pleads guilty to her role in the FTX collapse.
“We prepared certain quarterly balance sheets that hid the extent of Alameda’s borrowing and the billions of dollars in loans Alameda had made to FTX executives and related parties,” Ellison told U.S. District Judge Ronnie Abrams in Manhattan federal court. , according to the transcript.
Ellison is cooperating with prosecutors as part of his plea deal.
Bankman-Fried, who also owns Alameda, was accused of orchestrating an “epic” fraud that led to the loss of billions of dollars in funds from clients and investors of FTX, his cryptocurrency exchange.
He was released on Thursday (22) on bail of US$ 250 million (R$ 1.3 billion) and acknowledged FTX’s risk management failures, but said he does not believe he has criminal responsibility.
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